Blogging Options: CBOE Morning Update 9.9.13

Volatility as an asset class

Crown Castle (CCI) is up $3.29 to $73.84 in the premarket after announcing  it is commencing the steps necessary to reorganize into a Real Estate Investment Trust, or REIT, for tax purposes.   Overall option implied volatility of 24 is near its 26-week average of 23.

Harley-Davidson (HOG) is indicated higher after Citigroup raised its price target to $72 and reiterated a Buy rating for the motor cycle manufacturer citing strong sales momentum and new product innovation. Citi said its channel checks indicate August/early September U.S. retail sales are up 13 to 15%. Overall option implied volatility of 25 is below its 26-week average of 27.

Facebook (FB) is up $0.50 to $44.50 in the premarket after the social Internet portal aims to launch two new search tools to give news organizations, and possibly marketers, more insight into real-time social conversations occurring via Facebook. Overall option implied volatility of 40 is near its 26-week average of 38.

Options expected to be active @ CBOE; AGU POT IPI MOS CF

CBOE S&P 500 BuyWrite Index (BXM) is recently closed at $957.52, below its 50-day moving average of 956.35. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 15.85, near its 10-day moving average of 16.01 and above its 50-day moving average of 14.35. www.cboe.com/VIX

Calls with increasing volume at CBOE:

AMAT 10/19/2013 16 31K contracts
SPY 9/6/2013 166 26K
PFE 9/21/2013 30 19K
JNJ 10/19/2013 95 17K
WAG 9/21/2013 52 13K
VXX 9/13/2013 25 12K
AAPL 9/6/2013 500 11K

SPDR S&P 500 ETF Trust (SPY) is recently up 37c to $166.41 as crude oil trades near two-year highs.  Koch Industries to but Molex for $38.50, a 40% premium to its close Friday.