Blogging Options: CBOE Morning Update 2.28.14

Q4 Annualized GDP was revised lower to 2.4% growth from the previously reported 3.2%. Personal Consumption fell from 3.3% to 2.6% (~3% expected).  Talking heads were explaining away the Q4 drop to the weather but wasn’t December weather pretty good? Chinese currency problems and much confusion in Ukraine leaning on overseas markets.

Volatility as an asset class

Decker’s Outdoors (DECK) is down $10.96 to $73.71 in the premarket after the footwear company forecast a Q1 loss of 16c against analysts’ expectations for a 10c profit. Overall option implied volatility of 90 is above its 26-week average of 43.

Salesforce.com (CRM) is up $0.18 to $66.40  after posting a better than expected Q4 results and expects revenue to grow by 30% this year to as much as $5.3B. March call option implied volatility is at 54, April is at 41, May is at 37; compared to its 26-week average of 36.

Gap (GPS) is down $0.05 to $43.63 in the premarket after reporting better than expected Q4 results and warning weakening foreign currencies could hurt its earnings in 2014. February weekly call option implied volatility is at 59, April is at 30, September is at 26; compared to it 26-week average of 28.

Options expected to be active @ CBOE: GPS CRM DECK YOKU TSLA OVTI MNST ROST ARNA JCP

CBOE S&P 500 BuyWrite Index (BXM) at 1042.76, compared to its 50-day moving average of 1018.44. cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 257.10, compared to its 50-day moving average of 253.43. cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.42, compared to its 10-day moving average of 12.73.
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 up 15c to 43.25 in the premarket.

CBOE Volatility Index (VIX) at 14.04, compared to its 10-day moving average of 14.28 and its 50-day moving average of 14.6`. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is unchanged to $185.82 following yesterday’s record close. Investors will be examining economic data today, including the drop in Q4 GDP, personal consumption, a Chicago purchasing managers’ report, the University of Michigan consumer confidence index, and pending home sales for January.

Calls with increasing volume at CBOE:

XLF 3/22/2014 21 17K
QQQ 4/19/2014 90 15K
GM 1/17/2015 42 15K
EWZ 1/17/2015 51 15K
SD 3/22/2014 7 9K
SPY 2/28/2014 185.50 9K
CMCSA 4/19/2014 55 9K