Blogging Options: CBOE Morning Update 8.8.13

Volatility as an asset class

Tesla Motors (TSLA) is up $20.78 to $155 in the premarket after reporting better than expected earnings and revenue and announced second quarter car deliveries came in better than forecast. Overall option implied volatility of 92 is above its 26-week average of 56.

Groupon (GRPN) is higher by $1.94 to $10.66  after reporting an in-line Q2, naming Eric Lefkofsky CEO, and announcing a $300M share repurchase program. Overall option implied volatility of 80 is above its 26-week average of 64.

Green Mountain Coffee (GMCR) is down $4.46 to $74.80 in the premarket after its quarterly revenue came in below estimates and the company raised its full-year earnings outlook. Overall option implied volatility of 71 is above its 26-week average of 57.

Career Education (CECO) rose 20% to $4.30 in afterhours trading after the for profit education company reported a less than expected Q2 loss. Overall option implied volatility of 84 is above its 26-week average of 67.

Options expected to be active @ CBOE; FIO TSLA TUMI FB GMCR

CBOE S&P 500 BuyWrite Index (BXM) closed at $963.94, above 50-day moving average of 956.14. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 12.98, above its 10-day moving average of 12.03, and below its 50-day moving average of 15.21. www.cboe.com/VIX

Calls with increasing volume at CBOE:

MSFT 9/21/2013 32 28K contracts
BAC 8/9/2013 14.50 15K
XLF 9/21/2013 21 10K
IWM 8/17/2013 106 10K
FB 8/9/2013 39 9K
SPY 8/9/2013 170 9K
DELL 8/17/2013 14 9K

SPDR S&P 500 ETF Trust (SPY) is recently up $0.65c to $169.83 on unexpected strength in China’s July exports and imports. Oil lower, grains and metals slightly higher.  NIKKEI down 1.6%, but rest of Asian and European stocks higher.  Weekly Jobless slightly worse than expected but the 4-week average still trending lower.  MCD same-store sales for July were impressive.