Blogging Options: CBOE Morning Update 4.9.14

Get ready for VXST

Volatility as an asset class

Toyota (TM) is down $1.91 to $107.19 in the premarket after announcing a recall of over 6M vehicles worldwide. Overall option implied volatility of 21 is near its 26-week average of 22.

Alcoa (AA) IS up $0.54 to $13.07 after beating Wall Street estimates and soothing anxious investors who were concerned about earnings. April weekly call option implied volatility is at 65, April is at 44, May is 35, June and September is at 32; compared to its 26-week average of 32.

United Airlines (UAL) closed at $43.31 into reporting March consolidated traffic, or revenue passenger miles, increased 0.7% and consolidated capacity, or available seat miles, increased 2.7% versus March 2013. May call option implied volatility is 41, June is at 40, September is at 39; compared its 26-week average of 40.

Intuitive Surgical (ISRG) is down $46.34 to $443.50 in the premarket after giving a Q1 revenue outlook that widely missed expectations and saying it will take a $67M charge in the quarter related to legal settlements. April call option implied volatility is at 48, May is at 43, July is at 34; compared to its 26-week average 33.

Options expected to be active @ CBOE: TM AA ISRG K GM STZ LNKD BBBY JPM WFC

CBOE Interest Rate 5 Year Note (FVX) at 16.64 into release of March FOMC minutes

CBOE S&P 500 PutWrite Index (PUT) at 1400.95, compared to its 10-day MA of 1404.53 and its 50-day moving average of 1386.29. cboe.com/PUT

CBOE S&P 500 BuyWrite Index (BXM) at 1040.62, compared to its 10-day moving average of 1043.87 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 257.57, compared to its 50-day moving average of 255.18 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 14.51, compared to its 10-day moving average of 13.95. 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 0.50 to 41.52 in the premarket.

CBOE Volatility Index (VIX) at 14.89, compared to its 10-day moving average of 14.18 and its 50-day moving average of 15.16 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up 0.42 to $185.51 as commodities, emerging markets and Asian stocks rallied.

Calls with increasing volume at CBOE:

MGM 1/17/2015 30 14K contracts
LNG 1/17/2015 65 14K
SPY 4/11/2014 185 13K
EBAY 5/17/2014 55 11K
TLM 7/19/2014 11 9K
VXX 4/19/2014 42 9K
QQQ 4/19/2014 88 8K