Blogging Options: CBOE Morning Update 5.21.13

Volatility as an asset class

Best Buy (BBY) is down $0.68 to $26.38 in the pre-market after the retail chain reported a Q1 profit increase as revenue declined.  Overall option implied volatility of 62 is above its 26-week average of 59.

Home Depot (HD) is up $2.52 to $79.28 in the pre-market after the retailer reported better than expected quarterly results and outlook. Overall option implied volatility of 22 is near its 26-week average of 21.

Carnival (CCL) is off $2.27 to $33.05 after lowering full-year guidance on lower than expected revenue yields, voyage cancellations and increased costs. Overall option implied volatility of 22 is below its 26-week average of 26.

Urban Outfitters (URBN) is down $1.24 to $43.25 in the premarket after the teen retailer reported Q1 results below analyst expectations. Overall option implied volatility of 33 is near its 26-week average of 31.

VIX methodology for iShares Silver Trust (VXSLV) closed at 40.69; above its 50-day moving average of 30.29.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 42.55, above its 50-day moving average of 36.56.

Options expected to be active on open at CBOE; CCL HD BBY JPM URBN YHOO MDT TSLA

CBOE S&P 500 BuyWrite Index (BXM) closed at $966.60; above its 10-day moving average of 963.60 and above its 50-day moving average of 950.20. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 13.02, above its 10-day moving average of 12.78, and below its 50-day moving average of 13.34. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 15c to $166.78 in the premarket as the market will be looking to extend its streak of winning Tuesdays, as it has closed higher on every Tuesday this year.

Calls with increasing volume at CBOE:

SPY 5/24/2013 167 15K contracts
IWM 6/22/2013 104 10K
GLD 6/22/2013 147 10K
APA 1/18/2014 90 10K
MRK 6/22/2013 47 8K
JPM 6/22/2013 52.5 8K

Light trading expected, up 18 consecutive Tuesday’s?