Overseas markets with small gains. BAC off $0.60 as earnings adjustments announced. Light earnings and economic news day. More Russian sanctions expected. Volatility as an asset class
Corning (GLW) is up 46c to $21.20 in the premarket after reporting Q1 core EPS 31c, compared to its consensus estimates of 30c. May weekly call option implied volatility is at 44, June is at 25, August is at 23, November is at 22; compared to its 26-week average of 28.
AstraZeneca (AZN) is up $11.09 to $79.65 after Pfizer (PFE) confirmed that it has made a renewed approach regarding a takeover valued at nearly $100B. Overall option implied volatility of 27 is above its 26-week average of 19. PFE up $0.75 as traders sort out this news.
Furiex Pharmaceuticals (FURX) is up $21.85 in the premarket on Forest Laboratories (FRX) entering into a definitive agreement to acquire the drug development collaboration company for $95 per share. Overall option implied volatility of 92 is above its 26-week average of 80.
Options expected to be active @ CBOE: AZN PFE GE YOKU TWTR FB POZ EBAY DDD
CBOE S&P 500 BuyWrite Index (BXM) at 1055.10, compared to its 10-day moving average of 1044.82 cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) at 260.37, compared to its 50-day moving average of 257.87 cboe.com/micro/bxd/
CBOE S&P 500 Short-Term Volatility Index (VXST) at 13.94, compared to its 10-day moving average of 13.92. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2
iPath S&P 500 VIX Short-Term Futures (VXX) down 51c to 41.32
CBOE Volatility Index (VIX) at 14.06, compared to its 10-day moving average of 14.33 and its 50-day moving average of 14.50 cboe.com/VIX
SPDR S&P 500 ETF Trust (SPY) is up 0.95 to $187.24 on merger activity in the pharmaceutical sector.
Calls with increasing volume at CBOE:
EEM 5/17/2014 43 21K contracts
MU 7/19/2014 27 16H
SPY 4/25/2014 187 15K
AAPL 4/25/2014 570 12K
QQQ 4/25/2014 86.50 10K
VWO 5/2/2014 41 10K
MSFT 4/25/2014 40 7K