Blogging Options: CBOE Morning Update 8.20.13

Volatility as an asset class

Best Buy (BBY) is up $4.18 to $34.93 in the premarket as the electronic retailer reported strong Q2 earnings on better than expected cost controls.  Overall option implied volatility of 55 is above its 26-week average of 44.

Dick’s Sporting (DKS) is down $2.74 to $47.85 on less than expected Q2 results and outlook. Overall option implied volatility of 28 is above its 26-week average of 25.

Home Depot (HD) is higher by $2.45 to $77.65 after reporting an 11% increase in Q2 US same-store sales growth, the highest level in 14 years. Overall option implied volatility of 25 is above its 26-week average of 22.

J.C. Penney (JCP) is up 35c to $13.57 in the premarket after the retailer reported a Q2 loss on weakening sales.  Overall option implied volatility of 89 is above its 26-week average of 65.

Urban Outfitters (URBN) moved up $3.95 to $43.85 after the retailer reported Q2 profits increased 25% on higher than expected sales. Overall option implied volatility of 28 is near its 26-week average of 27.

Options expected to be active @ CBOE; BBY LOW HD HPQ P ARO ANF AEO JCP

CBOE S&P 500 BuyWrite Index (BXM) closed at $948.84, below its 50-day moving average of 956.51. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 15.10, above its 10-day moving average of 13.42 and below its 50-day moving average of 14.83. www.cboe.com/VIX

Calls with increasing volume at CBOE Monday:

ABX 1/17/2015 28 10K contracts
GG 1/17/2015 45 9K
BAC 11/16/2013 12 9K
JPM 9/21/2013 55 8K
C 10/19/2013 52.50 7K
SPY 9/21/2013 165 7K
AAPL 8/23/2013 520 6K
HD 9/21/2013 80 5K

SPDR S&P 500 ETF Trust (SPY) is recently up $0.59 to $165.35 as stocks try to break their four day losing streak.

Brick & Mortar retailers are alive and well – this quarter anyway. Asian stocks hit hard, Europe down across the board.  10-year bouncing around.