Blogging Options: CBOE Morning Update 8.15.13

Volatility as an asset class

Cisco (CSCO) is down $2.02 to $24.35 in the premarket after saying it will cut 4,000 jobs, despite an 18% increase in Q4 profit. Overall option implied volatility of 28 is above its 26-week average of 25.

NetApp (NTAP) is off $1.49 to $40.84 after the data storage company reported Q1 earnings rose 28%.  Overall option implied volatility of 33 is near its 26-week average of 34.

Dillard’s (DDS) closed at $78.95 into the department-store operator reported Q2 earnings rose 18%. Overall option implied volatility of 47 is above its 26-week average of 34.

Vipshop (VIPS) is lower by $5.95 to $40.01 in the premarket after the Chinese online discount retailer Q2 results missed analyst expectations. Overall option implied volatility of 98 is above its 18-week average of 66.

Options expected to be active @ CBOE; WMT BAC CSCO NVAX INTC EL JCP BBY

CBOE S&P 500 BuyWrite Index (BXM) closed at $966.04, above 50-day moving average of 956.73. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 13.04, below its 10-day moving average of 12.67 and its 50-day moving average of 14.94. www.cboe.com/VIX

Calls with increasing volume at CBOE:

WFC 10/19/2013 45 27K contracts
PAYX 9/21/2013 41 18K
JNJ 10/19/2013 95 17K
AAPL 8/17/2013 500 14K
SPY 8/17/2013 169 11K
PFE 9/21/2013 30 10K
F 8/17/2013 17 10K
CSCO 8/17/2013 28 10K

SPDR S&P 500 ETF Trust (SPY) is down $1.30 to $167.44 on lower guidance from Wal-Mart (WMT, off 2 points) and on uncertainty of Federal Reserve economic stimulus. AAPL lower by $3.50, ONXX is off $7.00 and GOOG is lower by $6.50, NASDAQ futures off 21 points reflect that weakness.

The CPI was in-line showing a gain of 0.2%, the Empire FED was off slightly.  Industrial Production showed a flat reading while Capacity Utilization disappointed, 77.6% last month.  10-year ticked above 2.8% earlier this morning.  Follow thru to downside? watch the VIX.