Blogging Options: CBOE Morning Update 1.15.14

Empire Fed report this morning upbeat, PPI for December up 0.4% as expected, but Core rate edged higher by 0.3%

Volatility as an asset class

Bank of America (BAC) is up $0.38 to $17.15 in the premarket after the bank reported better than expected results, and its comments about its outlook were upbeat. January call option implied volatility is at 37, February is at 24, April and August is at 22; compared to its 26-week average of 25.

General Motors (GM) is down $0.40 to $39.62 after declaring a 30c per share dividend (as expected), the automaker’s first payout since the spring of 2008. Overall option implied volatility of 29 is near its 26-week average of 27.

ExOne (XONE) is down $8.26 to $54 in the premarket after the three-dimensional content-to-print solutions provider cut its Q4 revenue outlook. Overall option implied volatility of 49 is near its 26-week average of 50.

Options active expected to be active @ CBOE: TSLA XONE DDD SSYS BAC GM NUS CHTP
CBOE S&P 500 BuyWrite Index (BXM) closed at 1026.40, above its 50-day moving average of 1005.03 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 256.59, above its 50-day moving average of 251.55 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 11.31, below its 10-day moving average of 12.15. VXST is a market-based gauge of expectations of 9-day volatility.   cboe.com/vxst

CBOE Volatility Index (VIX) closed at 12.28, below its 10-day moving average of 13.16 and its 50-day moving average of 13.48. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up $0.37 to $184.04 following yesterday’s gains and earnings from financial giant Bank of America (BAC).

Calls with increasing volume at CBOE:

GM 1/18/2014 43 20K contracts
BAC 1/18/2014 17 15K
SPY 3/22/2014 189 12K
ADM 3/22/2014 42 11K
GM 1/18/2014 41 11K
EROC 1/18/2014 5 10K
MGM 1/18/2014 22 9K
XLF 1/18/2014 22 9K