March employment showed a gain of 192k jobs, the Unemployment Rate was unchanged at 6.7%. Estimates were for a gain of 175k to 240k, but printing below 200k (even with minor adjustments to previous months) semi-disappointing. Futures hold modest gains. Final Four weekend and home opening day for 1/2 of MLB teams.
Volatility as an asset class
Micron (MU) is up $0.99 to $24.99 in the premarket after the maker of dynamic random access memories, or DRAMS, reported better than expected Q2 revenue. April weekly call option implied volatility is at 189, April is at 62, May is at 53, July is at 44; compared to its 26-week average of 46.
CarmaxCarMax (KMX) is $1.66 to $46.10 after the vehicle retailer reported Q4 EPS 44c, consensus 53c. April call option implied volatility is at 37, May is at 27, July is at 26; compared to its 26-week average of 27.
Mylan (MYL) is up $5.94 to $55.80 in the premarket on reports the pharmaceutical company is looking at buy Swedish drug maker Meda. Overall option implied volatility of 40 is above its 26-week average of 29.
Options expected to be active @ CBOE: MYL MU KMX FB PLUG GOOG
CBOE S&P 500 PutWrite Index (PUT) at 1415.25, above its 10-day MA of 1405.15 and its 50-day moving average of 1383.32. cboe.com/PUT
CBOE S&P 500 BuyWrite Index (BXM) at 1052.32, compared to its 10-day moving average of 1043.93 cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) at 260.24, compared to its 50-day moving average of 254.81 cboe.com/micro/bxd/
CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.53, compared to its 10-day moving average of 13.97. 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 25c to 40.74 in the premarket.
CBOE Volatility Index (VIX) at 13.37, compared to its 10-day moving average of 14.16 and its 50-day moving average of 15.26 cboe.com/VIX
SPDR S&P 500 ETF Trust (SPY) is up $0.67 to $189.30 as European shares were higher ahead of March U.S. jobs data.
Calls with increasing volume at CBOE:
SPY 4/4/2014 190 30K contracts
XLK 6/21/2014 39 29K
BAC 4/4/2014 17.50 9K
GM 1/17/2015 50 7K
Puts with increasing volume at CBOE:
VXX 4/19/2014 38 15K contracts
SPY 5/17/2014 184 15K
GLW 5/17/2014 21 12K
IWM 4/19/2014 112 11K