Blogging Options: CBOE Morning Update 8.21.13

Volatility as an asset class  

Staples (SPLS) is down $1.59 to $15.25 in the premarket after the office supply retailer reported Q2 revenue rose 1.3%.  Overall option implied volatility of 32 is at its 26-week average.

Lowe’s (LOW) is up $1.92 to $46 after Q2 sales rose 26%. Overall option implied volatility of 34 is above its 26-week average of 25.

Intuit (INTU) is off fractionally after the online tax preparer reported a Q4 revenue increase. Overall option implied volatility of 23 is near its 26-week average of 22.

Target (TGT) is lower by $0.20 to $67.75 in the premarket after the retailer reported Q2 profit decrease of 13%. August weekly call option implied volatility is at 24, September is at 18, January is at 16; compared to its 26-week average of 18.

Options expected to be active @ CBOE; INTU IBM LOW TGT HPQ P ARO ANF AEO

CBOE S&P 500 BuyWrite Index (BXM) closed at $951.14, below its 50-day moving average of 956.24. www.cboe.com/BXM


CBOE Volatility Index (VIX) closed at 14.91, above its 10-day moving average of 13.63 and near its 50-day moving average of 14.81. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 43c to $165.15 as European stocks drop for the third day before the release of Federal Reserve minutes.

Calls with increasing volume at CBOE:

BAC 12/21/2013 16 21K contracts
SPY 8/30/2013 168 10K
IWM 8/23/2013 101.50 7K
MU 8/23/2013 14 6K
AAPL 8/23/2013 505 6K

Asian shares mixed, Europe lower.  Watch the FED.