Blogging Options: CBOE Morning Update 1.8.14

Forget the cold (and my dead car battery)!  Traders were talking about the possible shortage of Velveeta as reported by USA Today.  I have an in at Kraft if you need my help. Duetsche Bank upgrades Kraft btw.

ADP jobs numbers were pretty good, as they estimate 239k jobs were added in December.  Good news for the economy might mean additional Taper, so traders thinking glass half empty.

Volatility as an asset class

Micron (MU) is up $2.26 to $23.99 in the premarket after the chip maker reported Q1 earnings and revenue that topped estimates. January weekly call option implied volatility is at 116, January is at 61, February is at 54, July is at 45; compared to its seven-week average of 47.

Apollo Education (APOL) is up $2.47 to $29.40 after the for profit educator reported Q1 earnings that topped estimates and giving a fiscal-2014 operating income outlook of $400M-$500M. January call option implied volatility is at 150, January is at 84, February is at 49, May is at 45; compared to its 26-week average of 44.

Forest Laboratories (FRX) is higher by $8.94 to $67.70 in the premarket after announcing that it has entered into a definitive agreement to acquire Aptalis for $2.9B in cash from its shareholders. Overall option implied volatility of 29 is above its 26-week average of 26.

Options active expected to be active @ CBOE: FRX MU APOL TEVA PATH PLUG MSFT TWTR

CBOE S&P 500 BuyWrite Index (BXM) closed at 1023.86, above its 50-day moving average of 1001.45 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 256.54, above its 50-day moving average of 250.61 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 11.57, below its 10-day moving average of 12.25. VXST is a market-based gauge of expectations of 9-day volatility.   cboe.com/vxst

CBOE Volatility Index (VIX) closed at 12.92, below its 10-day moving average of 13.20 and near its 50-day moving average of 13.56. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is down 0.13 to $183.35 into the release of December Fed minutes.

Calls with increasing volume at CBOE:

QQQ 1/10/2014 87 27K contracts
DOW 3/22/2014 41 23K
XLF 3/22/2014 23 21K
F 1/18/2014 16 15K
TWTR 2/22/2014 85 11K
BAC 1/18/2014 17 10K
BBY 1/10/2014 40 10K