Blogging Options: CBOE Morning Update 4.12.13

Volatility as an asset class

Walter Energy Inc. (WLT) is recently up $1.58 to $25.65 in the premarket after the coal miner announced improved financial performance on sales volume and pricing. Overall option implied volatility of 65 is above its 26-week average of 56.

Infosys (INFY) is recently down $11.99 to $42.35 in the premarket after the technology servicing company reported disappointing Q4 revenue growth and guidance.  Overall option implied volatility of 48 is above its 26-week average of 31.

J.B. Hunt Transport Services Inc. (JBHT) is indicated lower in the premarket after the trucking company reported less than expected earnings on better than expected revenue. Overall option implied volatility of 38 is near its 26-week average.

Options expected to be active on open; JPM JBHT LNKD WLT ASH JCP WFC

CBOE S&P 500 BuyWrite Index (BXM) closed at $952.52; above its 10-day moving average of 946.12 and above its 50-day moving average of 933.55. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 12.24, above its 10-day moving average of 13.17, and its 50-day moving average of 13.51. www.cboe.com/VIX.

Calls with increasing volume at CBOE:
FXI 4/20/2013 37.5 37K
SPY 4/12/2013 159 13K
YHOO 7/20/2013 25 12K
BAC 4/20/2013 12.50 11K
AAPL 4/12/2013 435 9K

Puts with increasing volume at CBOE:
SPY 5/18/2013 153 39K contracts
CTIC 6/22/2013 1 20K
VXX 4/20/2013 18 19K
IWM 5/18/2013 87 15K

S&P 500 Futures off 5 points, DJIA Futures down 42 as investors await corporate earnings as major stock indexes trade at record highs. A few banks reporting today, with special charges and credits we’ll let market show us the way.

March Retail Sales fell 0.4%, expectations were for unchanged. Core rate down 0.2%.  Feb #’s revised lower.