Blogging Options: CBOE Morning update 4.2.14

ADP slightly below estimate, eyes on Russian reaction to new sanctions and HFT talk.  Markets mixed at opening.  CBOE March trading volume higher.

Volatility as an asset class

Apollo Education (APOL) is lower by $1.30 to $33.85 in the premarket after a mixed Q2 report and disclosing that its University of Phoenix subsidiary received a subpoena from the U.S. Department of Education seeking documents related to  financial aid processing. April weekly call option implied volatility is at 125, April is at 61, May is at 46, August is at 40; compared to its 26-week average of 44.

MannKind (MNKD) is up $3.73 to $7.73 after an FDA advisory panel voted in favor of its Afrezza to treat type 1 and type 2 diabetes. Overall option implied volatility of 232 is above its 26-week average of 108.

Monsanto (MON) is up $0.93 to $114.49 in the premarket on a modest Q2 beat and inline sales growth outlook.  April weekly call option implied volatility is at 37, April is at 22, May and July is at 20; compared to its 26-week average of 22.

Options expected to be active @ CBOE: MNKD MU MON FB MYGN

CBOE S&P 500 PutWrite Index (PUT) at 1413.45, above its 10-day MA of 1403.47 and its 50-day moving average of 1381.69. cboe.com/PUT

CBOE S&P 500 BuyWrite Index (BXM) at 1051.34, compared to its 10-day moving average of 1044.02 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 259.86, compared to its 50-day moving average of 254.67 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.29, compared to its 10-day moving average of 14.42. 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 16c to 40.90 in the premarket.

CBOE Volatility Index (VIX) at 13.10, compared to its 10-day moving average of 14.46 and its 50-day moving average of 15.24 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently up 18c to $188.43 as global shares extended their rally.

Calls with increasing volume at CBOE:

SPY 4/11/2014 190 55K contracts
F 4/4/2014 16 41K
C 4/19/2014 50 11K
QQQ 4/4/2014 89 10K
IAU 1/17/2015 14 10K
AA 1/17/2015 17 9K
APC 4/19/2014 90 9K
CSCO 5/17/2014 23 8K