Blogging Options: CBOE Morning Update 5.14.13

Volatility as an asset class

SolarCity (SCTY) is down $3.29 to $32.60 in the pre-market after the solar-panel installer reported higher than expected overhead expenses that lead to a large loss. Overall option implied volatility of 99 is above its 20-week average of 65.

Copa Holdings (CPA) closed at $125 after the Latin American air carrier reported better than expected Q1 results. Overall option implied volatility of 34 is above its 26-week average of 27.

Take-Two (TTWO) is up 1.05 to $17.44 in the pre-market on better than expected Q1 results. Overall option implied volatility of 50 is above its 26-week average of 43.

Sony (SNE) is indicated higher in the premarket after hedge-fund manager Daniel Loeb announced a 6.3% stake in the company. he is also demanding a partial spin-off of some assets. Overall option implied volatility of 38 is near its 26-week average of 36.

VIX methodology for iShares Silver Trust (VXSLV) closed at 33.10; above its 50-day moving average of 28.93.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 43.07, above its 50-day moving average of 35.22.

Options expected to be active on open at CBOE; AAPL JPM TSLA SCTY SNE TWO

CBOE S&P 500 BuyWrite Index (BXM) closed at $962.63; above its 10-day moving average of 961.30 and above its 50-day moving average of 947.29. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 12.55, below its 10-day moving average of 13.08, and its 50-day moving average of 13.39. www.cboe.com/VIX

Calls with increasing volume at CBOE:

SPY 5/31/2013 165 32K contracts
BAC 5/18/2013 13 8K
DNDN 5/18/2013 5 7K
JPM 6/22/2013 50 5K
BBRY 5/18/2013 16 5K
SLV 1/18/2014 23 5K

SPDR S&P 500 ETF Trust (SPY) is up $0.10 to $163.56 on stable international markets. Only one of S&P 500 firms report earnings today.