Blogging Options: CBOE Morning Update 6.18.13

Volatility as an asset class

Boeing (BA) is recently up $0.20 to $103.23 in the premarket after Air Lease announced a commitment for 30 787-10Xs and United Airlines (UAL) increased its 787 Dreamliner order to 65 aircraft. Overall option implied volatility of 24 is near its 26-week average of 23.

Steel Dynamics (STLD) is up fractionally to $15.00, sees Q2 EPS 10c-14c, below consensus 23c pressured by weak steel prices. Overall option implied volatility of 32 is near its 26-week average of 33.

Korn/Ferry (KFY) is higher by $0.80 to $18.07 into the executive-search company on slightly better than expected Q4 results and an upbeat Q1 view. Overall option implied volatility of 41 is near its 26-week average of 42.

CBOE Interest Rate 5 Year Note (FVX) closed at 10.45, below its 10-day moving average of 10.70

VIX methodology for iShares Silver Trust (VXSLV) closed at 35.57; above its 50-day moving average of 35.80.

CBOE VIX methodology for Market Vectors Gold Miners Fund (VXGDX) closed at 41.10, above its 50-day moving average of 41.93.

Options expected to be active on open at CBOE; AAPL BAC C JPM MS GS WFC XLF  PNC TBT.

CBOE S&P 500 BuyWrite Index (BXM) closed at $965.18, above its 10-day moving average of 958.06 and its 50-day moving average of 957.69. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 16.80, above its 10-day moving average of 16.69, and its 50-day moving average of 14.38. www.cboe.com/VIX

CBOE VIX futures June at 16.95, August at 18.55, February is at 21.30

Calls with increasing volume at CBOE:

PFE 7/20/2013 35 74K contracts

SPY 6/22/2013 165 25K

MU 10/19/2013 14 19K

ZTS 7/20/2013 40 13K

PBR 6/22/2013 15 10K

GILD 7/20/2013 60 10K

MSFT 6/22/2013 35.50 10K

SPDR S&P 500 ETF Trust (SPY) is recently up $0.11 to $164.55 as the FOMC begins its two day meeting which concludes tomorrow. Investors will be hoping the Fed clarifies its position on the potential tapering of its bond buying program.

May Housing Starts rose but were below expectations.
Today is last day to trade June VIX, expiration tomorrow