Blogging Options: CBOE Morning Update 4.1.14

Train station empty, apparently spring break.  March ISM and Feb Construction Spending reports due out at 9:00am CDT.

Volatility as an asset class

BHP Billiton (BHP) is up $1.13 to $68.90 in the premarket after the giant mining company said it was considering overhauling its portfolio further to focus on  five key commodities. Overall option implied volatility of 22 is below its 26-week average of 25.

General Motors (GM) is down $0.11 to $34.31 as CEO Mary Barra plans to tell a Congressional subcommittee today that she doesn’t know why it took years for a safety defect involving ignition switches to be disclosed. April weekly call option implied volatility is at 45, April is at 34, June is at 28; compared to its 26-week average of 28.

Facebook (FB) is up $0.27 to $60.51 in the premarket as COO Sheryl Sandberg disposes of more than half her stake in the social media company since its initial public offering, according to regulatory filings. Facebook April weekly option implied volatility is at 54, April is at 42, May is at 57, June is at 47; above its 26-week average of 43.

Options expected to be active @ CBOE: GM VALE BHP FCX MNKD FB MU

CBOE S&P 500 PutWrite Index (PUT) at 1407.85, above its 10-day MA of 1402.80 and its 50-day moving average of 1380.90. cboe.com/PUT

CBOE S&P 500 BuyWrite Index (BXM) at 1046.66, compared to its 10-day moving average of 1044.19 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 259.10, compared to its 50-day moving average of 254.62 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 13.75, compared to its 10-day moving average of 14.62 and its 50-day moving average of 15.04 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up $0.42 to $187.42 as Q1 ended with statements from Fed Chief Janet Yellen reassuring investors that the central bank would continue to support the economy.

Calls with increasing volume at CBOE:

SPY   3/31/2014 187    17K contracts
COP  4/19/2014 72.50 16K
VZ     6/21/2014  50         9K
MSFT 1/17/2015 42        9K

Puts with increasing volume at CBOE:

IWM   5/17/2014 114  19K
XLU   6/21/2014   39   15K
XLP   5/17/2014   42    15K
SPY   5/17/2014 177    13K
EEM  4/19/2014   38    11K
RSX  4/19/2014   22     10K