Blogging Options: CBOE Morning Update 1.14.14

Street watching WFC & JPM as earnings season kicks in.  Google buying NEST looked on as a great fit.  10-year edges up to 2.85%.  Big volume day in VIX options yesterday.

Volatility as an asset class

JP Morgan (JPM) is up $0.29 to $58.01 in the premarket on Q4 benefiting from a continued reduction in the provision for credit losses and equity underwriting revenue increasing 42% from a year earlier. January call option implied volatility is at 26, February and March is at 19; compared to its 26-week average of 22.

Time Warner Cable (TWC) is higher by $1.97 to $134.37 after announcing its board rejected a merger proposal from Charter Communications (CHTR) that valued the company at $132.50 per share. Overall option implied volatility of 23 is below its 26-week average of 28.

Microsoft (MSFT) is down $0.26 to $34.71 in the premarket after Citigroup downgraded its rating to Neutral from Buy citing a balanced risk/reward profile ahead of the company’s new CEO decision.  Overall option implied volatility of 26 is above its 26-week average of 23.

Options active expected to be active @ CBOE: TWC CHTR SSYS TSLA JPM WFC BAC INTC  VIX

CBOE S&P 500 BuyWrite Index (BXM) closed at 1021.80, above its 50-day moving average of 1004.26 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 255.42, above its 50-day moving average of 251.35 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 13.09, above its 10-day moving average of 12.32. VXST is a market-based gauge of expectations of 9-day volatility.   cboe.com/vxst

CBOE Volatility Index (VIX) closed at 13.28, near its 10-day moving average of 13.29 and near its 50-day moving average of 13.51. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently up 56c to $182.24 on German industrial production, a surprise drop in U.K. headline inflation and the Nikkei plunging over 3%.

Calls with increasing volume at CBOE:

SPY 1/18/2014 183 25K contracts
QQQ 1/18/2014 87.50 16K
BAC 1/18/2014 17 13K
DOW 1/18/2014 45 12K

Puts with increasing volume at CBOE:

SPY 1/18/2014 181 19K contracts
LNG 1/17/2015 40 9K
DD 4/19/2014 57.50 8K
GME 1/18/2014 41 8K

No Comments
CBOE

cboe.com

Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education.

Tags

, ,