CBOE Mid-day Update 4.7.14

Stocks continue lower, option volume up.

MannKind (MNKD) is down $0.76 to $6.10 after announcing the FDA extension of PDUFA date (adding ~ 3 months to decision process) for Afrezza. April and May call option implied volatility is at 81, August is at 114; compared to its 26-week average of 109.

Pfizer (PFE) is off $1 to $31.15 after announcing data for palbociclib in metastatic breast cancer. April and May call option implied volatility is at 19, June and September is at 18; compared to its 26-week average of 18.

Airline stocks were higher but have given up initial gains in a down market, after Goldman Sachs raised its rating on the sector to Attractive from Neutral. It initiated coverage of American Airlines (AAL, off $0.60) with a Buy rating and upgraded its rating on JetBlue (JBLU, unchanged) to Neutral from Sell. Goldman kept Buy ratings on Delta (DAL down $0.59) and United Continental (UAL lower by $0.67).

American Airlines overall option implied volatility of 37 is at its 18-week average.

JetBlue overall option implied volatility of 35 is at its 26-week average.

Delta overall option implied volatility of 35 is at its 26-week average.

United Continental overall option implied volatility of 39 is at its 26-week average.

Actives @ CBOE:  AAPL TSLA MNKD MGM AMZN NFLX C PBR FB BIDU TWTR
Options with increasing volume @ CBOE: DDD HST WWE CMCSK MILL EXC QCOR SQQQ GNK PPG

CBOE S&P 500 Short-Term Volatility Index (VXST) up $3.20 to 16.38, compared to its 10-day moving average of 14.94. VXST is a market-based gauge of expectations of 9-day volatility cboe.com/vxst

CBOE DJIA BuyWrite Index (BXD) down $1.36 to 257.45, compared to its 50-day moving average of 255.03. cboe.com/micro/bxd/

CBOE Volatility Index (VIX) up 1.74 to 15.70. VIX April 16, 19 & 20 calls are active at CBOE on 408K contracts cboe.com/VIX

iPath S&P 500 VIX Short-Term Futures (VXX) up $1.22 to 43.04.

CBOE DJIA Volatility Index (VXD) +11.5% to 14.63

CBOE Nasdaq-100 Volatility Index (VXN) +8.2% to 20.33

S&P 100 Options (OEX) down $6.74 to $817.86 resuming the sell-off that began last Friday.