Blogging Options: CBOE Morning Update 4.18.13

Volatility as an asset class

VIX methodology for iShares Silver Trust (VXSLV) closed at 39.35; above its 50-day moving average of 25.95.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 51.29, above its 50-day moving average of 30.38.

PepsiCo (PEP) is up 3.00 to $81.85 after reporting a Q1 beat on organic revenue growth of 4.4%.  Overall option implied volatility of 15 is at its 26-week average  of 15.

SanDisk (SNDK) is up $0.18 to $55.90 after the flash-memory maker raised its revenue outlook to $5.6B to $5.75B. Overall option implied volatility of 41 is above its 26-week average of 37.

eBay (EBAY) is down $2.73 to $53.35 on double-digit increases in Q1 revenue and profit. Overall option implied volatility of 31 is near its 26-week average of 32.

VIX methodology for Google (VXGOG) closed at 27.10, above its 50-day moving average of 25.34 into Q1.

Options expected to be active on open; IBM MSFT PEP GE HON MCD SCSS BAC INTC SNDL ABX EBAY GOOG

CBOE S&P 500 BuyWrite Index (BXM) closed at $945.94; below its 10-day moving average of 947.67 and above its 50-day moving average of 935.56. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 16.51, above its 10-day moving average of 13.82, and its 50-day moving average of 13.58. www.cboe.com/VIX.  It was 16.73, up 0.22 a few moments ago.

Markets off slightly, unable to hold pre-market rally.

Calls with increasing volume at CBOE:
S 8/17/2013 8.0000 68K contracts
SPY 4/20/2013 157 27K
BAC 5/18/2013 13 22K

Puts with increasing volume at CBOE:
IWM 12/31/2013 60 93K
SPY 4/20/2013 152 42K
VXX 9/21/2013 11 24K
MS 10/19/2013 15 22K
NOK 5/18/2013 3.50 19K

Initial Claims a little higher, minor problems with Italian and German Parliaments.
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Marty Kearney

Mr. Kearney began his long association with the CBOE when he became an independent Market Maker in early 1981. Mr. Kearney traded options full time on the trading floor until 1992 and periodically thereafter until 1996. In early 1992 he became a founding partner and Registered Options Principal of a brokerage firm based in…

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