Blogging Options: CBOE Morning Update 8.29.13

Volatility as an asset class

Vodafone (VOD) is up $2.25 to $31.66 in early trading after confirming it’s in talks with Verizon (VZ) to sell its 45% stake in their joint venture, Verizon Wireless.  Overall 26 option implied volatility is near its 26-week average  25.

Verizon is up $1.53 to $48.09. Overall option implied volatility of 19 is near its 26-week average of 18.

Guess (GES) is up $3.34 to $30.70 after the clothing retailer reported better than expected Q2 earnings.  September call option implied volatility is at 55, October and December is at 40; above its 26-week average of 37.

Fresh Market (TFM) is down $4.28 to $50 after the specialty grocer lowered its full-year per share guidance. Overall option implied volatility of 38 is near its 26-week average of 37.

Options expected to be active @ CBOE; VZ VOD T FB TSLA WSM GES

CBOE S&P 500 BuyWrite Index (BXM) closed at $946.70, below its 50-day moving average of 955.03.

CBOE Volatility Index (VIX) down 0.20 to 16.29, above its 10-day moving average of 15.20 and its 50-day moving average of 14.63.

Calls with increasing volume at CBOE:

XLF 10/19/2013 20 36K contracts
SPY 9/30/2013 168 29K
NOK 1/17/2015 7 17K
TIF 9/21/2013 85 15K
CAT 1/18/2014 92.50 7K

Puts with increasing volume at CBOE Wednesday:

SPY 9/30/2013   154 13K
AAPL 8/30/2013 490   8K

VIX off slightly, SPDR S&P 500 ETF Trust (SPY) is up $0.40 to $164.33 on signal that an expected Western military strike on Syria could be postponed.  Q2 GDP revised higher (with help from Net Trade) but key components revised lower.  Weekly claims a push.  Crude off slightly, GLD off $0.95.  10-year 2.79%.