Blogging Options: COE Morning Update 1.17.14

Expiration today.  Holiday Monday.  My train empty, maybe everyone working from home.

Housing Starts fell 9.8%, and Permits were lower by 3%.  UPS announced lower earnings and guidance this morning (see Brian Overby’s blog with a bearish outlook on UPS we posted on Tuesday), Morgan beat estimates.  INTC and AXP missed by $0.01 after the close yesterday, 10-year below 2.84%, overseas markets uneventful, SPY off $0.29 to $184.13.

Volatility as an asset class

General Electric (GE) is down $0.44 to $26.78 in the premarket on Q4 income increasing 4.8%. January call option implied volatility is at 66, February is at 21, March and June is at 18; compared to its 26-week average of 22.

Intel (INTC) is down $1.01 to $25.53  after a mixed Q4 earnings report that saw the company miss on the bottom line but beat on the top line. Overall option implied volatility of 31 is above its 26-week average of 22.

Morgan Stanley (MS) is up 80c to $32.80 in the premarket on a Q4 revenue rising 9.7% to $8.2B. January call option implied volatility is at 49 February is at 26, April is at 25, July is at 23; compared to its 26-week average of 27.

Options active expected to be active @ CBOE: RDEN CNW UPS NIHD HLF NUS TWTR AAPL AXP GE MS INTC

CBOE S&P 500 BuyWrite Index (BXM) closed at 1027.04, above its 50-day moving average of 1006.49 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) closed at 257.17, above its 50-day moving average of 251.94 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 11.09, below its 10-day moving average of 11.57. VXST is a market-based gauge of expectations of 9-day volatility.   cboe.com/vxst

CBOE Volatility Index (VIX) closed at 12.53, below its 10-day moving average of 12.85 and its 50-day moving average of 13.46. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is down 0.23 to $184.19 as investors digest earnings reports from some of the country’s largest financial corporations.

Calls with increasing volume at CBOE:

QQQ 2/22/2014 90 65K contracts
BAC 1/18/2014 17 15K
INTC 1/18/2014 28 13K
DOW 1/18/2014 40 12K
BEAM 3/22/2014 82.50 11K
BX 2/7/2014 33 10K
SPY 1/18/2014 182 10K
INTC 1/18/2014 27 10K