Blogging Options: CBOE Morning Update 9.18.13

Volatility as an asset class

Dollar Tree (DLTR) is up $1.96 to $57.79 in the premarket after the discount retailer adopted a $2B share repurchase plan, $1B accelerated repurchase. Overall option implied volatility of 25 is near its 26-week average of 26.

Adobe (ADBE) is higher by $2.76 to $50.90 after the maker of Photoshop and Illustrator design software reported better than expected subscriber growth.  Overall option implied volatility of 36 is above its 26-week average of 26.

Five Below (FIVE) is indicated lower by $1.65 after the teen retailer filed to sell 7.1M common shares for selling shareholders. Overall option implied volatility of 39 is below its 26-week average of 42.

SPDR Gold Trust (GLD) overall implied volatility at 22; 26-week average is 19.

iShares Silver Trust (SLV) overall implied volatility at 36; 26-week average is 31.

Russell 2000 (IWM) overall implied volatility at 18; 26-week average is 18.

Financial Select Sector (XLF) overall volatility at 17, 26-week average is 19.

September front month equity options expire, September 20, 2013.

Options expected to be active @ CBOE; NOK FDX ORCL CBRL MSFT FB

CBOE S&P 500 BuyWrite Index (BXM) closed at $970.06, above its 50-day moving average of 958.86. www.cboe.com/BXM

CBOE Volatility Index (VIX) closed at 14.43, below its 10-day moving average of 14.88 and above its 50-day moving average of 14.13. www.cboe.com/VIX

Calls with increasing volume at CBOE:

XLK 10/19/2013 33 16K contracts
MU 1/18/2014 18 13K
VXX 10/19/2013 20 11K
BAC 10/19/2013 15 10K
SPY 9/21/2013 172 9K

Puts with increasing volume at CBOE:

XLF 10/19/2013   20    24K
SPY 10/19/2013 165   12K
VXX 10/19/2013 13      9K
MS 1/18/2014     20      8K

SPDR S&P 500 ETF Trust (SPY) is up $0.21 to $171.28 into a FOMC policy decision this afternoon.  Taper to begin this afternoon?

August Housing Starts showed a gain of 0.9% (near expectations) versus a gain of 5.7% in July.  Starts off slightly.