Blogging Options: CBOE Morning Update 11.1.13

Volatility as an asset class

First Solar (FSLR) is up $7.75 to $58 after the solar-panel maker reported Q3 profit more than doubled. November weekly call option implied volatility is at 209, November and December is at 74, January is at 63; compared to its 26-week average of 58.

AIG (AIG) is down $3.25 to $48.40 in the premarket after the insurer reported Q3 net income rose 17% to $2.17B. Overall option implied volatility of 36 is above its 26-week average of 26.

Newmont Mining (NEM) is off $1.00 to $26.26 after the world’s second-biggest gold producer reported a 11% increase in Q3 profit. November weekly call option implied volatility is at 69, December is at 40, January and March is at 38; compared to its 26-week average of 39.

Options expected to be active @ CBOE; AAPL GOOG ABX TSLA FB

CBOE S&P 500 BuyWrite Index (BXM) is higher by $1.70 to $989.60, above its 50-day moving average of 965.26.

CBOE DJIA BuyWrite Index (BXD) is up $0.75 at 247.38, above its 50-day moving average of 243.19.

CBOE Volatility Index (VIX) is off 0.41 to 13.34, near its 10-day moving average of 13.33 and below its 50-day moving average of 15.17.

SPDR S&P 500 ETF Trust (SPY) was up $0.60 in early trading to $176.39 in spite of losses in European and Asian stocks.

Calls with increasing volume Friday at CBOE:

SPY 12/19/2015 145 38K contracts
PBR 11/16/2013 17 20K
FB 11/1/2013 50 11K
LCC 12/21/2013 23 9K
BX 3/22/2014 26 9K

Option volume Thursday was pretty average, CBOE traded 4m+ of the 16m contracts traded.  Economic numbers don’t line up this morning, as the PMI dropped a point while ISM showed a small increase. Traders so far like what they see, as DJIA up 90 points and SPX up 7 points.  10-year climbs to 2.58%.

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