Blogging Options: CBOE Morning Update 3.24.14

Opening day a week from today – snow expected in Chicago today.  Chinese manufacturing drops sharply, markets look at that as Chinese stimulating economy.  Asian stocks rallied later in the session and moved Copper to the plus side.  Apple in talks with Comcast about streaming. US PMI later today.    How did Warren Buffett do in his pool (11 million plus “wait ’till next year”)?

Volatility as an asset class

Nu Skin (NUS) is up $18.51 to $93.50 in the premarket after the direct marketer provided an update on China regulatory review. Overall option implied volatility of 60 is above its 26-week average of 50.

Herbalife (HLF) is higher by $2.97 to $52.51 on Nu Skin’s update helping shares rally. Overall option implied volatility of 68 is above its 26-week average of 56.

iShares FTSE Xinhua China 25 Index (FXI) is up $0.50 to $34.45 on hopes for Chinese stimulus. Overall option implied volatility of 22 is near its 26-week average of 24.

Market-Vector Russia ETF Trust (RSX) is up $0.19 to $22.50 in the premarket on hopes Russian troops will not push further west after seizing a Ukrainian marine base. Overall option implied volatility of 33 is above its 26-week average of 28.

Options expected to be active @ CBOE: NUS HLF BBRY LULU ACN WAG RH NOK GM CTRP

CBOE S&P 500 PutWrite Index (PUT) at 1407.75, above its 10-day MA of 1403.44 and its 50-day moving average of 1376.79. cboe.com/PUT

CBOE S&P 500 BuyWrite Index (BXM) at 1041.60 compared to its 10-day moving average of 1048.89 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 257.04, compared to its 50-day moving average of 254.51 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 14.70, compared to its 10-day moving average of 15.29. 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 30c to 43.98 in the premarket.

CBOE Volatility Index (VIX) at 15, compared to its 10-day moving average of 15.23 and its 50-day moving average of 15 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up $0.44 to $186.64 on hopes for Chinese economic stimulus after a weak Chinese factory activity report.

Calls with increasing volume at CBOE:
SPY 3/28/2014 191 34K contracts
IWM 3/22/2014 120 12K
BAC 3/22/2014 18 12K
AAPL 3/22/2014 530 10K
PBR 1/17/2015 15 10K