Blogging Options: CBOE Morning Update 12.23.13

Good morning from a snowy and cold Chicago. Overseas markets slow overnight. Income for Nov. up 0.2% as expected, Spending up 0.5% beats. Savings Rate dipped to lowest level since last Feb.

Volatility as an asset class

Apple (AAPL) is up $19.58 to $569.12 in the premarket after an official multi-year agreement with China Mobile (CHL) for the iPhone 5s and 5c. Overall option implied volatility of 29 is above its 26-week average of 27.

CBOE APPLE VIX (VXAPL) closed at 28.87 above its 50-day moving average of 27.

Tiffany (TIF) is indicated down $1.70 to $88.92, as the luxury goods maker lowered its FY14 outlook after a Dutch court rules in favor of Swatch Group. Overall option implied volatility of 27 is above its 26-week average of 25.

Options active expected to be active @ CBOE: CHL S AAPL TIF

CBOE S&P 500 BuyWrite Index (BXM) closed at 1013.39, above its 50-day moving average of 993.05. cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 253.38, above its 50-day moving average of 250.98. cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 12.73, below its 10-day moving average of 15.19. VXST is a market-based gauge of expectations of 9-day volatility.   cboe.com/vxst

CBOE Volatility Index (VIX) closed at 13.79, below its 10-day moving average of 14.81 above its 50-day moving average of 13.81. www.cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is higher by $0.82 to $182.38.

Calls with increasing volume at CBOE:

SPY 12/21/2013 182 76K contracts
XLP 1/18/2014 44 26K
IWM 12/31/2013 114. 23K
DOW 1/18/2014 40. 21K
AMAT 1/17/2015 20 18K