Blogging Options: CBOE Morning Update 4.17.13

Volatility as an asset class

VIX methodology for iShares Silver Trust (VXSLV) closed at 43.77; above its 50-day moving average of 25.65.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 42.14, above its 10-day moving average of 34.98.

Yahoo (YHOO) is off $0.57 to $23.18 in the premarket after reporting a Q1 profit increase of 36%. Overall option implied volatility of 37 is above its 26-week average of 28.

Textron (TXT) is down $1.87 to $27.48 in the premarket after missing Q1 expectations and lowering 2013 guidance based on soft business jet demand.  Overall option implied volatility of 45 is above its 26-week average of 35.

Cirrus Logic (CRUS) is down $2.35 to $19.06 in the premarket after saying it expects to record a significant Q4 inventory reserve charge and margins will be weaker than expected.  Overall option implied volatility of 58 is near its 26-week average of 57.

VIX methodology for Google $VXGOG @ 27.41, above its 10-day moving average of 25.22 into Q1.

Options expected to be active on open; BAC INTC CRUS BP ABX YHOO GOOG

CBOE S&P 500 BuyWrite Index (BXM) closed at $951.37; above its 10-day moving average of 947.21 and above its 50-day moving average of 935.09. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 13.96, above its 10-day moving average of 13.59, and its 50-day moving average of 13.54. www.cboe.com/VIX.

Calls with increasing volume at CBOE:

VXX 4/20/2013 19 25K contracts
SPY 4/20/2013 155 20K
IWM 6/22/2013 80 20K
EEM 9/21/2013 37.5 19K
S 1/18/2014 10 15K
VXX 4/20/2013 20 13K
GM 1/18/2014 20 12K
PFE 7/20/2013 26 11K

SPDR S&P 500 ETF Trust (SPY) is down 1.33 to $156.09 as investors react to weak European markets. German 10-year at record 1.28% shows investor fear in Europe. BofA earnings a little light but 1-time charges affect.

VIX April contract settles this morning.  VIX Futures volume yesterday 3rd highest on record (previous post by Russell Rhoads goes into yesterday’s action).