Blogging Options: CBOE Morning Update 8.19.13

Volatility as an asset class

Saks (SKS) is down 2c to $16 in the premarket after the retailer reported Q2 revenue $707.8M, compared to consensus $732.55M after agreeing to be acquired by Hudson Bay for $16 per share in July. Overall option implied volatility of 11 is below its 26-week average of 34.

SPDR Gold Trust (GLD) is up $0.09 to $132.60 as gold trades flat at $1,372. Overall implied volatility of 20 is near its 26-week average of 19.

iShares Silver Trust (SLV) closed at $22.34 as silver trades down 0.48% to $23.26. Overall implied volatility of 34 is near its 26-week average of 29.

United States Natural Gas Fund (UNG) is higher by $0.39 to $18.25 in the premarket as natural gas trades up 2.46% to $3.45. Overall option implied volatility of 33 is near its 26-week average of 32.

Options expected to be active @ CBOE; ADI HD BKS MDT JCP BBY

CBOE S&P 500 BuyWrite Index (BXM) closed at $951.58, above its 50-day moving average of 956.82. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 14.37, above its 10-day moving average of 13.09 and below its 50-day moving average of 14.84. www.cboe.com/VIX

Calls with increasing volume at CBOE:

SPY 8/17/2013 166 47K contracts
LOW 9/21/2013 48 25K
EEM 9/21/2013 40.50 19K
VXX 8/17/2013 15 16K
XLY 9/21/2013 59 13K

SPDR S&P 500 ETF Trust (SPY) is recently down $0.14 to $165.69 after last week’s large weekly loss.  Asian shares mixed, European stocks lower.  10-Year traded above 2.85% overnight.  Slow news day after August option expiration last Friday.