Blogging Options: CBOE Morning Update 2.7.14

Blame the weather.  Jan Non-Farm Payrolls grew at an anemic 113k, far below the 180k to 200k looked for.  More surprising was that December had been expected to be revised sharply higher but was not.  Futures have given up early gains but remain in slightly negative territory.   AAPL bought $14b of its shares after the price dropped in value due to the earnings report.  AAPL bought about half that amount in Q4 ’13.

Volatility as an asset class

Expedia (EXPE) is up $8.46 to $73.60 in the premarket after the online travel agency reported earnings and revenue that beat estimates, with bookings that rose 19% domestically and 24% internationally. February weekly call option implied volatility is at 149, March is at 52, April is at 46, July is at 42; compared to its 26-week average of 40.

LinkedIn (LNKD) is down $15.56 to $207.95 after the professional social network reported slightly better than expected results but gave first quarter and fiscal 2014 revenue guidance that disappointed.  February call option implied volatility is at 72, March is at 58, April is at 47; compared to its 26-week average of 46.

Outerwall (OUTR) is up $6.21 to $69.85 in the premarket after the Redbox operator reported a Q4 EPS beat on line revenue and also announced a $500M share repurchase plan. Overall option implied volatility of 25 is below its 26-week average of 38.

Options expected to be active @ CBOE: OUTR LNKD OPEN TWTR AAPL EXPE MT VRSN CI

CBOE S&P 500 BuyWrite Index (BXM) at 998.42, compared to its 50-day moving average of 1009.56. cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 246.88, compared to its 50-day moving average of 252.29. cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 18.67, compared to its 10-day moving average of 19.81 VXST is a market-based gauge of expectations of 9-day volatility.  cboe.com/vxst

iPath S&P 500 VIX Short-Term Futures (VXX) is down 84c to 47.67 in the premarket.

CBOE Volatility Index (VIX) at 17.23, compared to its 10-day moving average of 18.21 and its 50-day moving average of 14.54. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is flat after of January’s jobs report and on-going corporate earnings.

Calls with increasing volume at CBOE:

SPY  2/7/2014  177.50 18K contracts
EEM 2/22/2014   41   17K
DG   2/22/2014   60   15K
NOK 7/19/2014    9   11K
GM   3/22/2014  37   10K
YHOO 4/19/2014 40  10K