Blogging Options: CBOE Mid-day Update 4.24.14

Volatility as an asset class

Zimmer Holdings (ZMH) is recently up $10.38 to $101.84 after it agreed to merge with another company in the sector, privately held Biomet.  May call option implied volatility is at 23, June is at 21, September is at 18; compared to its 26-week average of 21.

General Motors (GM) is recently down 84c to $33.54 after reporting Q1 EPS 6c, compared to consensus 4c. GM CEO says no meaningful slowdown in U.S. sales seen yet after recall. May call option implied volatility is at 26, June is at 24, September is at 25; compared to its 26-week average of 28.

Verizon (VZ) is recently down $1.19 to $46.25 after reporting Q1 adjusted EPS 84c, consensus 87c. May, June and October call option implied volatility is at 14; compared to 26-week average of 17.

Actives at CBOE:  AAPL TSLA P GILD AMZN FB BAC TWTR NFLX VZ ZNGA

Stocks with increasing volume:  UPL SD NOV AMAT EOG EROC ALLT DO HMSY HBAN COV ELY EDU RES IM

CBOE S&P 500 Short-Term Volatility Index (VXST) up 4.3% to 13.22; compared to its 10-day moving average of 14.17. VXST is a market-based gauge of expectations of 9-day volatility stks.co/r0CS2

CBOE DJIA BuyWrite Index (BXD) up 0.1% to 261.86, compared to its 50-day moving average of 257.71. cboe.com/micro/bxd/

CBOE Volatility Index (VIX) up 0.6% to 13.35. VIX May 14 and 18 calls are active at CBOE on 177K contracts cboe.com/VIX

iPath S&P 500 VIX Short-Term Futures (VXX) up 20c to 41.21

CBOE DJIA Volatility Index (VXD) up 0.6% to 12.43; compared to its 50-day moving average of 13.77.

CBOE Nasdaq-100 Volatility Index (VXN) up 2% to 17.24; compared to its 50-day moving average of 17.18

S&P 100 Options (OEX) recently up 3.18 to $832.16 following the apparent denial of a Putin presser (as if he’s going to telegraph and invasion), which allowed the stock market to focus back in on earnings again from the tech titans of Apple +8% and Facebook +1.7% again, along with the assortment of others on this biggest of earnings release days.