Blogging Options: CBOE Morning Update 4.7.14

Overseas markets soft as are US stock futures. Oil & gas off fractionally.  VIX Futures trade 7k in early session.  Earnings season begins in a few days.  NCAA Finals tonight, how does your bracket look?

Volatility as an asset class

Procter & Gamble (PG) is up $0.28 to $80.05 in the premarket after the consumer-products company raised its quarterly dividend by 7%. Overall option implied volatility of 14 is below its 26-week average of 16.

Sears Holdings (SHLD) is higher by $0.87 to $41.55 after completing its Land’s End spin-off, grossing $500M. Overall option implied volatility of 53 is near its 26-week average of 56.

World Wrestling Entertertainment (WWE) is down $0.42 to $27.60 in the premarket after announcing that WrestleMania 30 broke the record for the Mercedes-Benz Superdome’s highest grossing entertainment event and the company’s ultimate appeal could be overestimated, Barron’s says.

Options expected to be active @ CBOE: MNKD GM AA QCOM QCOR MNK INTC

CBOE S&P 500 PutWrite Index (PUT) at 1407, above its 10-day MA of 1405.11 and its 50-day moving average of 1384.09. cboe.com/PUT

CBOE S&P 500 BuyWrite Index (BXM) at 1045.08, compared to its 10-day moving average of 1044.28 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 258.91, compared to its 50-day moving average of 254.89 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 13.18, compared to its 10-day moving average of 13.81. 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 50c to 42.34 in the premarket.

CBOE Volatility Index (VIX) at 13.96, compared to its 10-day moving average of 14.04 and its 50-day moving average of 15.26 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is down $0.44 to $185.93 after weakness in momentum stocks last week sent the NASDAQ index to February levels.

Calls with increasing volume at CBOE:

SPY   4/11/2014 190  49K contracts
XLK   6/21/2014  39   30K
KRE   6/21/2014  43   17K
ETFC 5/17/2014  24  15K

Puts with increasing volume at CBOE:

SPY  4/25/2014  183  46K contracts
EEM 6/21/2014    35  32K
IYR   4/19/2014   67   21K
XLE 5/17/2014    90   15K

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Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education.

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