Blogging Options: CBOE Morning Update 3.31.14

Overseas markets higher. 10-yr 2.74%.  PMI data and Chairman Yellen remarks expected to be watched closely in first hour of trading.  End of Quarter “Window Dressing”?  Good basketball over the weekend, men’s and women’s.  Baseball Opening Day for most of us.

Volatility as an asset class

Lululemon (LULU) is up $1.51 to $53.40 in the premarket after Wedbush upgraded the athletic retailer to Outperform from Neutral and raised its price target raised to $64 from $55. Overall option implied volatility of 38 is near its 26-week average of 39.

Biogen Idec (BIIB) is higher by $5.88 to $300  after announcing that the U.S. FDA has approved Alprolix, the first recombinant, DNA derived hemophilia B therapy with prolonged circulation in the body. Overall option implied volatility of 41 is above its 26-week average of 34.

InterOil (IOC) closed at $63.41 into reporting Q4 EPS (51c), compared to consensus (4c).  April weekly call option implied volatility is at 77, May is at 46, September is at 42; compared to its 26-week average of 46.

Options expected to be active @ CBOE: MNKD BIIB GM PRAN FB BBRY MU LULU SPX

CBOE S&P 500 PutWrite Index (PUT) at 1399.20, above its 10-day MA of 1402.49 and its 50-day moving average of 1380.23. cboe.com/PUT

CBOE S&P 500 BuyWrite Index (BXM) at 1040.30, compared to its 10-day moving average of 1044.58 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 257.60, compared to its 50-day moving average of 254.59 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 14.41, compared to its 10-day moving average of 14.83. 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 37c to 43.18 in the premarket.

CBOE Volatility Index (VIX) at 14.41, compared to its 10-day moving average of 14.78 and its 50-day moving average of 15.20 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up $0.91 to $186.40 as Eurozone inflation fell to the lowest level since late 2009, slipping to 0.5% on year in March from 0.7% in February.

Calls with increasing volume at CBOE:

SPY 3/31/2014 188 21K
F 4/4/2014 15.50 14K
MSFT 7/19/2014 45 10K
IDRA 4/19/2014 5 10K
GM 9/20/2014 39 10K
MNKD 4/19/2014 2 8K
AAPL 3/28/2014 540 7K