Blogging Options: CBOE Morning Update 9.16.13

Bulls are saying “thank you” to Larry Summers..

Boise (BZ) is up $2.72 to $12.67 in the premarket after Packaging Corporation of America (PKG) announced the acquisition of Boise for $12.55 per share in cash. Overall option implied volatility of 38 is below its 26-week average of 53.

SPDR Gold Trust (GLD) is down $0.75 to $127.07 as gold rises 0.24% to $1,311. September call option implied volatility is at 22, October is at 21, November and December is at 19; compared to its 26-week average of 19.

MSCI Emerging Markets Index (EEM) is up $0.63 to $41.79 on hopes for a dovish FOMC policy.  Overall option implied volatility of 23 is above its 26-week average of 21.

VIX methodology for iShares MSCI Emerging Markets Index Fund (VXEEM) at 24.29, near 50-day moving average of 24.71.

Options expected to be active @ CBOE; AAPL BZ PKG LNKD NOK FB

CBOE S&P 500 BuyWrite Index (BXM) closed at $968.76, above its 50-day moving average of 958.25.

CBOE Volatility Index (VIX) closed at 14.16, below its 10-day moving average of 15.35 and above its 50-day moving average of 14.15.

Calls with increasing volume at CBOE:

FXI   12/21/2013   40.50   32K contracts
SPY 11/16/2013  175      30K
INTC 10/19/2013  24      11K
VXX  10/19/2013   17      10K
IWM 9/21/2013  105      10K

SPDR S&P 500 ETF Trust (SPY) is up $1.77 to $171.10 after Larry Summers withdrew from the race for Fed Chairman and a diplomatic solution to Syria into a FOMC taper statement on Wednesday

Empire FED missed by a lot but expectations rose.

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