Blogging Options: CBOE Morning Outlook 8.6.13

Volatility as an asset class

American Eagle (AEO) is down $3.20 to $16.77 in the premarket after the teen retailer lowered its Q2 earnings guidance. Overall option implied volatility of 31 is near its 26-week average of 33.

Amazon.com (AMZN) is down $1.50 to $299.50 after Chief Executive Jeff Bezos announced the purchase of the newspaper business from the Washington Post (WPO).  Overall option implied volatility of 25 is below its 26-week average of 29.

Michael Kors (KORS) is recently up $3.37 to $71.25 in the premarket after the handbag maker reported Q1 net increase of 82%. Overall option implied volatility of 44 is near its 26-week average of 43.

Options expected to be active @ CBOE; SNE KORS AEO STO IBM FB TSLA BBRY DELL ALU

CBOE S&P 500 BuyWrite Index (BXM) closed at $967.20, above 50-day moving average of 956.12. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 11.84, below its 10-day moving average of 12.85, and its 50-day moving average of 15.27. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down $0.30 to $170.40 as indexes are near record high.

Calls with increasing volume at CBOE:

EEM 1/18/2014 45 9K contracts
CSCO 8/9/2013 27 7K
BBY 9/21/2013 32 7K
SPY 8/17/2013 173 6K
AAPL 8/9/2013 470 5K
TWTC 8/17/2013 30 5K
DNDN 8/17/2013 7 5K