Blogging Options: CBOE Morning Update 10.22.13

Volatility as an asset class

Netflix (NFLX) is up $30 to $385 in the premarket after the movie subscription company reported Q3 profit more the quadrupling and adding more internet subscribers globally.  October weekly call option implied volatility is at 150, November is at 66, December is at 54, January and March is at 47; compared to its 26-week average of 49.

VMware (VMW) is up $7.55 to $90.20 after the visualization-software maker reported a Q3 profit increase of 66%.  October call option implied volatility is at 119, January is at 36, April is at 35; compared to its 26-week average of 42.

EMC Corp (EMC) is down $0.94 to $24.30 after the data-storage provider reported Q3 income declined 6.4%. Overall option implied volatility of 33 is above its 26-week average of 26.

Texas Instruments (TXN) is down $0.74 to $40.25 after the chip maker reported Q3 profit decrease of 20%. Overall option implied volatility of 27 is above its 26-week average of 23.

TJX Cos. (TJX) is up $2.01 to $59.59 in the premarket after the discount retailer raised its full year earnings guidance. Overall option implied volatility of 22 is near its 26-week average of 21.

Options expected to be active @ CBOE; AAPL EMC NFLX GOOG VMW FB TXN TSLA AMGN AMZN

CBOE S&P 500 BuyWrite Index (BXM) closed at $984, above its 50-day moving average of 960.34. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 245.31, above its 50-day moving average of 242.73. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) closed at 13.16, below its 10-day moving average of 16.12 and its 50-day moving average of 15.30. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up $0.42 to $174.82 after September jobs report and corporate earnings.

Calls with increasing volume at CBOE:

ODP 1/17/2015 5 20K contracts

SPY 11/8/2013 177.50 16K

BAC 2/22/2014 15 10K

GE 12/21/2013 26 7K

AAPL 10/25/2013 520 7K

ITB 11/16/2013 22 6K

JCP 10/25/2013 7 6K

The belated September jobs report disappointed, showing a gain of only 148k (wide range of expectations, 170k to 198k)

No Comments
CBOE

cboe.com

Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education.