Blogging Options: 6.14.13

Volatility as an asset class

Smith & Wesson (SWHC) is up $0.52 to $9.82 in the premarket after the gun maker pre-announced earnings and a $100M share repurchase authorization. Overall option implied volatility of 43 is below its 26-week average of 49.

Edwards Lifescience’s (EW) is down $0.97 to $70.98 in the premarket after losing a patent bid in Germany versus Medtronic (MDT), Bloomberg says. Overall option implied volatility of 35 is above its 26-week average of 30.

Groupon (GRPN) is up $0.52 to $7.38 in the premarket after being upgraded to Buy from Hold at Deutsche Bank. Overall call option implied volatility of 60 is below its 26-week average of 69.

CBOE Interest Rate 5 Year Note (FVX) is recently down 73c to 10.24 in the premarket, below its 10-day moving average of 10.71.

VIX methodology for iShares Silver Trust (VXSLV) closed at 36.79; above its 50-day moving average of 35.48.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 42.56, above its 50-day moving average of 41.60.

Options expected to be active on open at CBOE; AAPL FSLR BA GCI SIRI TSLA.

CBOE S&P 500 BuyWrite Index (BXM) closed at $962.95, above its 10-day moving average of 957.36 and its 50-day moving average of 956.93. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 16.41, above its 10-day moving average of 16.56, and its 50-day moving average of 14.25. www.cboe.com/VIX

CBOE VIX futures June at 18.80, August at 18.45, February is at 21.

Calls with increasing volume at CBOE:

SPY 6/22/2013 166 30K contracts

XLF 6/22/2013 20 8K

ELN 6/22/2013 13 8K

PFE 7/20/2013 36 7K

Puts with increasing volume at CBOE:

SPY 6/22/2013 162 23K contracts

IWM 6/22/2013 93 11K

XLI 6/22/2013 42 10K

PPI for May with a gain of 0.5% far above estimated of a 0.1% gain.  Core Rate (X-Food & Energy rose only 0.1%

SPDR S&P 500 ETF Trust (SPY) is recently down 20c to $164.01 as dollar stabilizes.