Blogging Options: CBOE Morning Update 5.5.14

Happy Cinco de Mayo (no lime shortage in Chicago).  Markets opening lower on escalating trouble in Ukraine and profit taking. VIX opens near14.13, up 1.22, 10-year touches 2.58%.  Banks lower across the board, 1.5% to 3%.  European and Asian shares lower. Some earnings beats and misses this morning – those that beat said all was well, several of those missing blamed weather.  ISM later today, not much else on economic calendar until Wed.  Volatility as an asset class

iShares FTSE Xinhua China 25 Index (FXI) is down 26c to $34.84 on weak Chinese HSBC PMI. May call option implied volatility is at 23, June is at 22, July is at 21; compared to its 26-week average of 22.

Market-Vector Russia ETF Trust (RSX) is up 1c to $22.30 on increased Russian risk. May weekly call option implied volatility is at 44, June is at 37, August is at 32; compared to its 26-week average of 28.

Target (TGT) is down $0.82 to $61.19 as CEO and chairman Gregg Steinhafel stepping down effectively immediately.  May weekly call option implied volatility is at 20, June is at 22, July is at 19, October is at 18 and January is at 17; compared to its 26-week average of 18.

Options expected to be active @ CBOE: BAC KO PFE JPM AZN FB TWTR TSLA TGT VIX

CBOE S&P 500 BuyWrite Index (BXM) at 1057.94, compared to its 10-day moving average of 1054.31 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 262.57, compared to its 50-day moving average of 258.63 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 11.23, compared to its 10-day moving average of 12.96. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) up 50c to 40.50

CBOE Volatility Index (VIX) closed at 12.91, compared to its 10-day moving average of 13.43 and its 50-day moving average of 14.41 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is off $1.05 to $187.00 on Chinese HSBC PMI edged up to 48.1 in April from 48 in March. The reading indicates that factory activity contracted for a fourth consecutive month, although the figure contrasts with official data that shows slight growth.

Calls with increasing volume at CBOE:

EEM 12/20/2014 45.50 20K
SPY  5/2/2014      188  16K
XHB 6/21/2014    33   13K
VXX  6/21/2014    50   10K
IWM 5/2/2014    112.50 8K

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