Blogging Options: CBOE Morning Update 7.26.13

Volatility as an asset class

Starbucks (SBUX) is up $4.62 to $72.79 in the premarket on Q3 earnings increasing 25%. July weekly call option implied volatility is at 87, August is at 24, October is at 19, January is at 20; compared to its 26-week average of 23.

Expedia (EXPE) is down $15.30 to $49.63.70 after the online travel agent reported higher than expected costs. August call option implied volatility is at 54, September is at 37, January is at 34; compared to its 26-week average of 37.

Amazon.com (AMZN) is off $3.83 to $299.56 in the premarket on a surprise Q2 loss. July weekly call option implied volatility is at 86, August is at 33, September is at 28, October is at 26; compared to its 26-week average of 31.

Gilead Sciences (GILD) has gained $3.54 to $64.40 after the drug company reported a Q2 profit increase of 8.6%. Overall option implied volatility of 37 is above its 26-week average of 33.

Cleveland Cliffs (CLF) is up $0.97 to $19.35 in the premarket after the miner reported Q2 results beating expectations on better costs and production. July weekly call option implied volatility is at 112, August is at 54, September is at 51, January is at 50, January is at 46; compared to its 26-week average of 56.

Zynga (ZNGA) is recently down $0.59 to $2.91 after the social-game maker guided for a wider than expected Q3 loss. Overall option implied volatility of 72 is above its 26-week average 68.

Stocks expected to be active @ CBOE; ZNGA FB ATVI EXPE LNKD HAL CLF CBS TSLA SBUX TSLA GILD

CBOE S&P 500 BuyWrite Index (BXM) closed at $959.16, above its 10-day moving average of 587.11 and its 50-day moving average of 956.44. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 12.97, below its 10-day moving average of 13.32, and its 50-day moving average of 15.33. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 74c to $168.19 on profit taking after solid earnings reports from U.S. corporations.

Calls with increasing volume at CBOE:

SPY 7/26/2013 169.5 17K contracts
EWJ 1/18/2014 14 15K
ZNGA 8/17/2013 3.50 12K
FB 7/26/2013 34 12K

Japanese markets get hit overnight.  Metals and Oil lower as well.