Blogging Options: CBOE Morning Update 8.5.13

Volatility as an asset class

Tyson Foods (TSN) is up $1.15 to $29.66 in the premarket after the meat producer reported stronger than expected Q3 growth. Overall option implied volatility of 30 is above its 26-week average of 25.

Qualcomm (QCOM) is down $1 to $65.75 after Piper Jaffray downgraded shares of Qualcomm and lowered its price target to $67 from $71, citing falling demand for high-end smartphones. Overall option implied volatility of 22 is near its 26-week average of 24.

Proshares UltraShort Barc 20 Year Treasury ETF (TBT) is higher by 12c to $76.60 as bond prices trend lower. Overall option implied volatility of 27 is below its 26-week average of 30.

Options expected to be active @ CBOE; DELL ALU NOK LNKD TSN YELP FB VRNG PCLN QCOM

CBOE S&P 500 BuyWrite Index (BXM) closed at $966.72, above 50-day moving average of 956.01.

CBOE Volatility Index (VIX) closed at 11.98, below its 10-day moving average of 12.89, and its 50-day moving average of 15.31.

SPDR S&P 500 ETF Trust (SPY) is down 31c to $170.64 as stocks are near record high.

Calls with increasing volume at CBOE:

XME 12/21/2013 43 40K contracts
CSCO 8/9/2013 26.50 29K
SPY 8/2/2013 171 21K
FB 8/2/2013 38 18K
VXX 9/6/2013 22 15K
TLT 9/21/2013 112 10K

ISM Report 30 minutes into the trading day will set the tone.