Blogging Options: CBOE Morning Update 10.4.13

Volatility as an asset class

Union Pacific (UNP) is down $1.68 to $153.51 in the premarket after the railroad operator issued earnings and revenue targets that are below analyst expectations. Overall option implied volatility of 22 is near its 26-week average.

Forest Oil (FST) is up 52c to $6.87  after the oil and gas producer announced the sale of its Texas Panhandle assets for $1B. Overall option implied volatility of 60 is near its 26-week average of 61.

OpenTable (OPEN) is higher by $1.54 to $71.27 on Piper Jaffray’s upgrade to Overweight on expectations the company’s increased spend on mobile advertising will help drive acceleration in adoption during 2014-2015. Piper raised its price target for shares to $80 from $65. Overall option implied volatility of 43 is near its 26-week average of 41.

Xyratex (XRTX) is down 91c to $11.09  after data-storage systems company reported Q3 earnings fell 70% on a double digit revenue decline. Overall option implied volatility of 54 is above its 26-week average of 47.

Options expected to be active @ CBOE; NOK SAP FB NBS TSLA SIRI MU
CBOE S&P 500 BuyWrite Index (BXM) closed at $953, below its 50-day moving average of 959.79. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 244.19, below its 50-day moving average of 244.20. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) closed at 17.67, above its 10-day moving average of 15.14 and its 50-day moving average of 14.44. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently is recently up 14c to $167.78 into the fourth day of the U.S. government partial shutdown.

Calls with increasing volume at CBOE:

TSO 2/22/2014 60 33K contracts
XLF 10/19/2013 20 31K
SPY 10/19/2013 174 30K
IP 1/18/2014 60 15K
DIA 10/19/2013 157 14K