Blogging Options: CBOE Morning Update 11.5.13

Volatility as an asset class

Walgreens (WAG) is up $0.06 to $60.21 in the premarket after the retailer reported October SSS rose 5.8%. Overall option implied volatility of 21 is below its 26-week average of 23.

T-Mobile (TMUS) is higher by $0.96 to $29.30 in the after the wireless telecom provider announced the adition of 1M customers in Q3.  Overall option implied volatility of 66 is above its 26-week average of 42.

Corinthian Colleges (COCO) is up $0.05 to $2.21 after the for profit educator reported Q1 revenue of $364M, compared to consensus $374M.  Q1 new student enrollments was down 8.1% to 28,551 vs. 31,058 last year. Overall option implied volatility of 66 is near its 26-week average of 67.

DirecTV (DTV) is indicated higher by $1.50 in the premarket after reporting Q3 adjusted EPS $1.28, compared to consensus $1.02. Overall option implied volatility of 25 is near its 26-week average of 26.

Mosaic (MOS) is down $0.78 to $45.95 after fertilizer producer reported Q3 EPS 29c compared to 98c last year.  Q3 revenue was $1.91B vs. $2.65B last year. Overall option implied volatility of 40 is above its 26-week average of 34.

IntercontinentalExchange (ICE) is up $2 to $195.84 in the premarket after reporting Q3 revenue of $338M, compared to consensus $332.79M. Overall option implied volatility of 24 is near its 26-week average of 23.

Options expected to be active @ CBOE; BAC ABX AIG TSL KORS AAPL BBRY COCO FB
CBOE S&P 500 BuyWrite Index (BXM) closed at $991.42, above its 50-day moving average of 966.68. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 247.57, above its 50-day moving average of 243.41. http://www.cboe.com/micro/bxd/

CBOE Volatility Index (VIX) closed at 12.93, near its 10-day moving average of 13.33 and below its 50-day moving average of 15.12. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently is down 46c to $176.37 as European stocks pull back.

Calls with increasing volume at CBOE:

F 1/18/2014 18 46K contracts
DIA 12/21/2013 158 9K
SPY 2/22/2014 187 7K
FB 11/8/2013 50 7K
GLD 12/21/2013 131 6K
VXX 3/22/2014 13 5K
TRP 11/16/2013 45 4K
IWM 2/22/2014 112 4K

ISM at 9:00am CST might give us direction this morning. European shares lower.