Blogging Options: CBOE Morning Update 1.31.14

“As January goes, so go rest of the year”.  Stock futures off 1% plus this morning. Europe off 1.5%, world off a little less.  December Personal Income unchanged (+0.2% in Nov), Spending +0.4% (+0.6% in Nov).  Watch action in the VIX complex.

Volatility as an asset class

Amazon (AMZN) is down $33.45 to $369.56 in the premarket after its Q4 earnings and revenue missed expectations. January weekly call option implied volatility is at 165, February is at 39, March is at 32; compared to its 26-week average of 33.

VIX methodology for Amazon $VXAZN closed at 47 above 50-day moving average of 33.18.

Google (GOOG) is up $41.10 to $1176.50 after reporting bottom-line earnings that missed expectations on revenue that topped estimates, with the tech giant saying its aggregate paid clicks increased 31% over the prior year period. January weekly call option implied volatility is at 149, February is at 37, March is at 29; compared to its 26-week average of 22.

VIX methodology for Google (VXGOG) closed at 34.25, above 50-day moving average of 23.06.

Chipotle Mexican Grill (CMG) is up sharply on light volume, as they said revenues exceeded expectations and the strong traffic trend from Q4 continuing in Q1. January weekly call option implied volatility is at 100, February is at 40, March is at 31, June is at 29; compared to its 26-week average of 28.

Options expected to be active @ CBOE:  ZNGA FB MSFT VOD TWTR GOOG AMZN YHOO VIX

CBOE S&P 500 BuyWrite Index (BXM) at 1007.64, below its 50-day moving average of 1010.09. cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 250.02, below its 50-day moving average of 252.78. cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 17.95, compared to its 10-day moving average of 15.60 VXST is a market-based gauge of expectations of 9-day volatility.  cboe.com/vxst

CBOE Volatility Index (VIX) at 17.35, above its 10-day moving average of 15.04 and its 50-day moving average of 13.91. VIX is up 26% for year.  cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is down 2.18 to $177.05 on emerging market stress.

Calls with increasing volume at CBOE:

QQQ 3/22/2014   99 165K contracts
SPY  2/22/2014  187  21K
EWZ 4/19/2014   43  15K
BAC 1/31/2014   17  14K
MS  2/22/2014   30  14K
DAL 3/22/2014   35 11K
XLU 2/22/2014   39 10K
EFA 4/19/2014 68 9K