Blogging Options: CBOE Morning Update 10.29.13

Volatility as an asset class

U.S. Steel (X) is down $0.46 to $22.96 in the premarket after the steelmaker recorded a Q3 loss and gave slightly lower than expected guidance.  November weekly call option implied volatility is at 89, December is at 40, April is at 39; compared to its 26-week average of 43.

Seagate (STX) is off $2.10 to $47.75 after the data storage company reported Q1 earnings fell 27%. November weekly call option implied volatility is at 95; December is at 37, January at 35.

Apple (AAPL) moved all over the place after the close yesterday, and is up $2.50 to  $532.50  on selling 33.8M iPhones in Q4, up 26% from a year ago. November weekly call option implied volatility is at 76, November is at 34, December is at 31, January is at 28; compared to its 26-week average of 28.

Herbalife (HLF) is down $0.60 to $67.32  after the nutritional-supplements maker reported Q3 profit increase of 27%. November weekly call option implied volatility is at 138, November is at 64, January is at 53, February is at 55; compared to its 26-week average of 55.

BP (BP) is up $1.84 to $45.56 in the premarket after the British energy conglomerate raised its dividend, announced plans to sell $10B in assets by the end of 2015 and saying the proceeds would be distributed to shareholders. Overall option implied volatility of 17 is near its 26-week average of 18.

Options expected to be active @ CBOE; BP NOK AAPL ARMH FB YHOO LNKD VLO
CBOE S&P 500 BuyWrite Index (BXM) closed at $988.36, above its 50-day moving average of 962.89. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 246.73, above its 50-day moving average of 245.29. http://www.cboe.com/micro/bxd/

CBOE Short-Term Volatility Index $VXST @ 12.03, below 10-day moving average of 13.90 www.cboe.com/VXST

CBOE Volatility Index (VIX) closed at 13.31, below its 10-day moving average of 13.94 and its 50-day moving average of 15.28. www.cboe.com/VIX

Calls with increasing volume at CBOE:

ADM 3/22/2014 37 35K contracts
XLP 12/21/2013 43 20K
MDLZ 1/18/2014 34 15K
IYR 12/21/2013 69 14K
SPY 11/16/2013 179 12K
BX 3/22/2014 27 11K
NCR 12/21/2013 41 10K
PBR 11/16/2013 16 10K

SPDR S&P 500 ETF Trust (SPY) is is up $0.35 to $176.58 on mixed quarterly earnings reports and the start of a two-day FOMC meeting.  European stocks fractionally higher.

Retail Sales fell 0.1%, X-autos rose 0.4%.  Sep PPI was lower by 0.1% while Core PPI ticked higher by 0.1%.