Blogging Options: CBOE Morning Update 2.24.14

Asian stocks lower, European shares mixed.  Want a major sign that winter is over in Chicago?  Today marks the first day of NO “Dibs”.  Dibs is the time honored tradition of shoveling out a spot on the street for your car and putting a tacky lawn chair in the empty spot when you head out for work, shopping, etc.  It’s not allowed starting today.  And you thought it was when pitchers and catchers reported to spring training…

Volatility as an asset class

RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT) have agreed to merge. TriQuint shareholders will receive 1.675 shares of NewCo and RFMD shareholders will receive 1 share of NewCo for each TriQuint or RFMD share held.

RF Micro Devices is up $1.25 to $7.06 in the premarket. Overall option implied volatility of 39 is below its 26-week average of 43.

TriQuint Semiconductor is higher by $2.26 to $11.45 in the premarket. Overall option implied volatility of 43 is at its 26-week average.

Options expected to be active @ CBOE: SODA SCTY TQNT RFMD VZ VOD BBRY BIDU

CBOE S&P 500 BuyWrite Index (BXM) at 1037.64, compared to its 50-day moving average of 1014.94.

CBOE DJIA BuyWrite Index (BXD) at 255.36, compared to its 50-day moving average of 252.86.

CBOE S&P 500 Short-Term Volatility Index (VXST) at 13.04, compared to its 10-day moving average of 12.97. VXST is a market-based gauge of expectations of 9-day volatility.

iPath S&P 500 VIX Short-Term Futures (VXX) is recently down 51c to 42.50 in the premarket.
CBOE Volatility Index (VIX) at 14.14, compared to its 10-day moving average of 16.96 and its 50-day moving average of 14.68.

SPDR S&P 500 ETF Trust (SPY) is up $0.50to $184.39 as U.S. stocks trade near record highs.

Calls with increasing volume at CBOE:

SPY 2/22/2014 184 85K contracts
VXX 3/7/2014 71 19K
KMI 3/22/2014 35 17K
QQQ 2/22/2014 90 15K
FB 3/22/2014 70 12K
WMB 2/22/2014 40 11K