Blogging Options: CBOE Morning Update 1.16.14

January Expiration tomorrow.  Best Buy (BBY) getting crushed in the pre-market, down $11.00 to $26.57, as sales were the off 0.9% and revenue dropped 2.6% in holiday season. Goldman earnings beat, shares are flat. Weekly Claims up slightly.   December CPI rose 0.3%, highest rise since June ’13, Core Rate up by 0.1%.

Volatility as an asset class

CSX (CSX) is down $1.33 to $27.90 in the premarket after the railroad reported Q4 profit fell 3.8% as expenses increased.  January call option implied volatility is at 27, February is at 16, May is at 17, August is at 18; compared to its 26-week average of 22.

UnitedHealth (UNH) is down 74c to $74.10 after the health insurer reported Q4 revenue improved 8.2% to $31.1B. January call option implied volatility is at 43, February is at 23, June is at 23; compared to its 26-week average of 23.

PNC Financial (PNC) is up $2.16 to $81 on Q4 earnings rising 46%. January call option implied volatility is at 26, February is at 16, May is at 15; compared to its 26-week average of 19.

Citigroup (C) is off $1.44 to $53.64 in the premarket on Q4 EPS growth coming in below analyst expectations.  January call option implied volatility is at 23, February and April is at 19; compared to its 26-week average of 24.

Options active expected to be active @ CBOE: BBY PNC C NUS CEC CSX UNH GS SCTY YHOO GE

CBOE S&P 500 BuyWrite Index (BXM) closed at 1026.86, above its 50-day moving average of 1005.78 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 257, above its 50-day moving average of 251.75 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 10.64, below its 10-day moving average of 11.84. 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 13.02 and its 50-day moving average of 13.46. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 0.44 to $184.24 as earnings reports disappoint expectations of investors.

Calls with increasing volume at CBOE:

SPY 2/22/2014  188     47K contracts
BAC 1/18/2014  17.50 47K
QQQ 2/22/2014  90    29K
DOW 1/18/2014  45    24K
IWM 1/17/2015  130   20K