Blogging Options: CBOE Morning Update 10.31.13

Volatility as an asset class

Sony (SNE) is down $1.27 to $18.15 in the premarket after cutting its full-year profit forecast by 49%. up November weekly call option implied volatility is at 71, November is at 35, December is at 33, January is at 32, April is at 31; compared to its 26-week average of 38.

Facebook (FB) was up $1.65 to $50.63 on better than expected results but management commentary on decreasing engagement of younger teens is worrying analysts. November weekly call option implied volatility is at 196, December is at 56; compared to its 26-week average of 39.

Starbucks (SBUX) is off $1.33 to $79.50 in the premarket after the beverage company sees FY14 revenue growth of 10% or greater.  November weekly option implied volatility is at 83, December is at 27, January is at 25; compared to its 26-week average of 34.

Options expected to be active @ CBOE; AAPL GOOG SBUX YHOO BIDU XOM FB LNKD V

CBOE S&P 500 BuyWrite Index (BXM) closed at $988.76, above its 50-day moving average of 964.31. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 247.01, above its 50-day moving average of 244.36. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) closed at 13.65, near its 10-day moving average of 13.45 and below its 50-day moving average of 15.14. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently is down 25c to $176.08 after the U.S. Federal Reserve’s latest outlook.

Calls with increasing volume at CBOE:

SPY 11/16/2013 177 17K contracts
LCC 2/22/2014 22 14K
PLCM 11/16/2013 12.50 13K
VXX 11/1/2013 13 10K
INTC 1/17/2015 27.0000 8K
IWM 11/29/2013 116 7K
AAPL 11/1/2013 530 6K
FB 11/1/2013 50 6K

VISA (V) is off more than $5, XOM is up $0.15.  Weekly Claims no big deal, 10-year down to 2.51%.