Blogging Options: CBOE Morning Update 8.26.13

Volatility as an asset class

Onyx Pharmaceuticals (ONXX) is up $6.63 to $123.59 in the premarket on Amgen (AMGN) announcing the purchase of the cancer drug maker for $125 per share in cash. Overall option implied volatility of 48 is above its 26-week average of 37.

Qihoo 360 Technology (QIHU) is higher by $6.90 to $80.03 after the provider of Internet and mobile security products in China reported better than expected Q2 revenue of $151.7M.  Overall option implied volatility of 87 above its 26-week average of 50.

States Oil Fund (USO) is up $0.06 to $38 as geopolitical concerns in both Egypt and Syria have kept the price of oil high. Overall option implied volatility of 22 is near its 26-week average of 21.

Options expected to be active @ CBOE; QIHU ABX NEM ONXX FB AMGN TSLA MSFT

CBOE S&P 500 BuyWrite Index (BXM) closed at $953.50, below its 50-day moving average of 956.14. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 14.76, above its 10-day moving average of 13.98 and its 50-day moving average of 14.68. www.cboe.com/VIX

Calls with increasing volume at CBOE Friday:

EWZ 9/21/2013 45      22K contacts
IYR 10/19/2013 64      17K
MSFT 9/21/2013 35    15K
SPY 8/23/2013 166.50 13K
VXX 9/27/2013 19.50  10K
FB 8/23/2013 40        10K

SPDR S&P 500 ETF Trust (SPY) is flat $166.62 on the uncertainty over the timing of the Fed’s stimulus tapering.  European stocks lower on light trading.

Durable Goods Orders for July cratered, off 7.3%, far worse than the -4% expected.  Excluding Aircraft orders dropped 3.3% (slight rise had been anticipated).  More economic numbers as we approach Labor Day weekend.