Blogging Options: CBOE Morning Update 11.19.13

Volatility as an asset class

Best Buy (BBY) is down $2.49 to $41.07 in the premarket after warning of margin pressure in a promotional environment.  November weekly call option implied volatility is at 95, December is at 47, January is at 44, March is at 45; above its 26-week average of 43.

Home Depot (HD) is up $2.64 to $82.31 after the retailer reported Q3 net profit rose 43% and raised its outlook for the year. Overall option implied volatility of 23 is near its 26-week average of 22.

Salesforce.com (CRM) is off $0.96 to $54.55 after the web business software company reported an in line loss and conservative financial outlook. November weekly call option implied volatility is at 95, December is at 45, January is at 38; compared to its 26-week average of 39.

Urban Outfitters (URBN) is down $1.29 to $38.35 after the clothing retailer reported a Q3 profit increase of 18%. December call option implied volatility is at 36, January is at 31, March is at 29; compared to its 26-week average of 30.

Dick’s Sporting (DKS) is up 63c to $57 in the premarket after the sporting goods retailer reported better than expected Q3 earnings, traffic and sales. December call option implied volatility is at 31, January is at 26, March is at 25; compared to its 26-week average of 26.

Options expected to be active @ CBOE; MSFT TSLA BBY HD FB TWTR NQ JPM

CBOE S&P 500 BuyWrite Index (BXM) closed at $995.22, above its 50-day moving average of 974.85. www.cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 249.58, above its 50-day moving average of 244.86. http://www.cboe.com/micro/bxd/

CBOE S&P 500 PutWrite Index (PUT) closed at 1341.70, above its 10-day MA of 1340.67 and its 50-day moving average of 1318. www.cboe.com/PUT

CBOE S&P 500 95-110 Collar Index (CLL) closed at $600.85 www.cboe.com/CLL

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 11.80. VXST is a market-based gauge of expectations of 9-day volatility.   cboe.com/vxst

CBOE Volatility Index (VIX) closed at 13.10, above its 10-day moving average of 12.82 and below its 50-day moving average of 14.45. www.cboe.com/VIX

CBOE DJIA Volatility Index (VXD) closed @ 11.86, below its 50-day moving average of 13.77 www.cboe.com/VXD

VIX futures now trade 2:00 a.m. to 7:00 a.m. for Business Days Monday through Friday

SPDR S&P 500 ETF Trust (SPY) is recently is recently down 29c to $179.13 as U.S. indexes trade near record highs.

Calls with increasing volume at CBOE:

FXI 12/21/2013 42 50K contracts
BAC 11/22/2013 15 15K
SPY 3/22/2014 180 14K
GE 1/18/2014 28 11K
DG 1/18/2014 70 10K

Calls with increasing volume at CBOE:

SPY 12/21/2013 173 17K contacts
IWM 12/21/2013 110 7K

GMO & Carl Icahn issuing market warnings…. we’ll see.  Not much left on earnings table today, Story about Oct ’12 Jobs number being fabricated could be something to watch.