Blogging Options: CBOE Mid-day Outlook 6.14.13

Volatility as an asset class

Williams-Sonoma (WSM) is down $0.26 to $55.64 as shares pull back from record highs and RW Baird saying the company is well positioned to out-merchandise online competition as the housing recovery unfolds.  Overall option implied volatility of 27 is near its 26-week average of 28.

SolarCity (SCTY) is up $2.02 to $36.03 after the solar panel installer was upgraded to Outperform with a price of $52, up from $28 at Credit Suisse. Overall option implied volatility of 78 is above its 22-week average of 66.

LinkedIn (LNKD) is higher by $6.57 to $178.59 after ITG Research raised its Q2 revenue estimates due to increased order for membership and premium subscription volumes and pricing. Overall option implied volatility of 42 is near its 26-week average of 41.

CBOE Interest Rate 5 Year Note (FVX) is recently down 7.8% to 10.11; below its 10-day MA of 10.67.

CBOE S&P 500 2% OTM BuyWrite Index (BXY) is recently down $1.67 to 1293.35, above its 10-day moving average of 1288.61 and its 50-day moving average of 1291.42.


CBOE Volatility Index (VIX) is up 0.49 to 16.90. VIX June 17 and 18 calls are active on total option volume of 103K contacts at the CBOE.

S&P 100 Options (OEX) is down 3.75 to $733.50 and SPX off 7.35 as investors wait for central bank stimulus program comments. Slightly less than 10mm options contracts trade mid-day, SPX with ~447k, VIX traded ~441k.  SPX Weekly’s with103k options traded.  June Triple-Witch next week, June VIX expires next Wednesday, 6-19.