Blogging Options: CBOE Morning Update 1.10.14

December Payrolls rise 74k, 200k+ expected.  Jobless Rate, 6.7.   Participation Rate (300k individuals leave job force) of 62.8%, lowest in 35 years, November revised slightly higher.  Watch the 10-year, now below 2.9%.  Alcoa came in light on earnings last night.

Volatility as an asset class

Five Below (FIVE) is down $5.34 to $38.25 in the premarket  after the discount retailer cut its Q4 profit outlook and giving a sales outlook that fell short of its previous expectations. Overall option implied volatility of 41 is at its 26-week average.

Sears (SHLD) is down $5.43 to $37.20 after saying Q4 sales-to-date are down 7.6%, with the company also projecting Q4 and fiscal-2013 losses that were larger-than-expected. Overall option implied volatility of 58 is above its 26-week average of 54.

Infosys (INFY) is up $1.96 to $58.11 in the premarket after reporting Q3 EPS of 81c and adding 54 consulting clients during the quarter.  January call option implied volatility is at 55, February is at 37, April is at 33, compared to its 26-week average of 37

Options active expected to be active @ CBOE: AA YRCW BAC IMMU SHLD PLUG ANF AEO

CBOE S&P 500 BuyWrite Index (BXM) closed at 1024.28, above its 50-day moving average of 1002.89 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 256.35, above its 50-day moving average of 251 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 11.75, 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 12.89, below its 10-day moving average of 13.22 and near its 50-day moving average of 13.55. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) gave up early gains and is flat after the release of the monthly jobs report.  Target announced additional data may have been stolen from consumers in early December.  Target off $1.50 in pre-market.

Calls with increasing volume at CBOE:

VXX 1/24/2014 58 20K contracts
IP 1/18/2014 50 19K
SPY 1/18/2014 184 17K
SVU 4/19/2014 7 17K 0
CCL 1/17/2015 39.50 17K
BAC 1/18/2014 17 15K
F 2/22/2014 17 15K