Blogging Options: CBOE Morning Update 2.18.14

Coca Cola (KO) is off $0.63 to $38.30 after missing on revenue.  Empire State came in at 4.48, almost half of the 9.00 expected. Stock futures trimming early gains, now flat.

about Volatility as an asset class

Actavis Plc (ACT), the world’s second-largest generic-drug maker by market value agreed to buy Forest Laboratories Inc. (FRX) for in $25B in equity and cash.  Actavis Plc is recently trading up $26 to $218 in the premarket. Overall option implied volatility of 33 is above its 26-week average of 28.

Forest Laboratories is up $24.61 to $96.  Overall option implied volatility of 30 is above its 26-week average of 28.

Waste Management (WM) is down 92c to $42.75 in the premarket on the environmental services company seeing FY14 adjusted EPS $2.30-$2.35, consensus $2.41. Overall option implied volatility of 16 is at its 26-week average.

Options expected to be active @ CBOE: FRX PNRA KO TSLA WMT

CBOE S&P 500 BuyWrite Index (BXM) at 1033.43, compared to its 50-day moving average of 1012.20. cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 255.59, compared to its 50-day moving average of 252.49. cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) closed at 10.84, compared to its 10-day moving average of 16.16. 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 recently down 31c to 41.61 in the premarket.

CBOE Volatility Index (VIX) at 13.57, compared to its 10-day moving average of 16.48 and its 50-day moving average of 14.66. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is down 0.02 to $184.00 as European car sales increasese for the fifth consecutive month.

Calls with increasing volume at CBOE:

SPY 3/22/2014 180 29K contracts
QQQ 3/22/2014 89 17K
BHI 3/22/2014 62.50 16K

Puts with increasing volume at CBOE:

SPY 2/22/2014 179 28K contracts
IWM 2/22/2014 110 17K
FXI 3/22/2014 35 10K