Blogging Options: CBOE Morning Update 5.8.14

Initial Claims dropped below the 4-week average, but rest of news this morning mixed.  ECB left rates unchanged.  East Ukraine will go ahead with referendum to secede on Sunday and Russia test fires rockets (ICBM’s) in Asia.  China says exports rose but unclear where goods went.  The Vietnamese stock market (granted it’s small) dropped 5.9% overnight on China tension, largest drop in 13 years.  Marc Faber says go to cash but has he been a bear for a while?  Uncertainty in the air….  Volatility as an asset class

Tesla (TSLA) is down $18.47 to $182.55 in the premarket despite reporting earnings and sales that beat expectations. The electric carmaker said that it delivered 6,547 Model S vehicles during the first quarter, but said that battery cell supply will constrain production in its Q2.  May weekly call option implied volatility is at 145, May is at 85, June is at 65, September is at 55; compared to its 26-week average of 56.

SolarCity (SCTY) is up $4.27 to $52.08 after the distributor of clean energy reported better than Q1 results and guidance. May weekly call option implied volatility is at 115, May is at 77, June is at 62, October is at 58; compared to its 26-week average of 65.

Ford (F) is recently up $0.15 to $15.61 in the premarket after announcing a $1.8B share repurchase program. May call option implied volatility is at 20, June is at 21, October is at 20; compared to its 26-week average of 23.

Options expected to be active @ CBOE: TWTR TSLA ATHN YELP PCLN NLY SUNE SCTY GRPN COST

CBOE S&P 500 BuyWrite Index (BXM) at 1055.31, compared to its 10-day moving average of 1055.19 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 262.95, compared to its 50-day moving average of 259.02 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.82, compared to its 10-day moving average of 12.97. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) up 3c to 39.08

CBOE Volatility Index (VIX) at 13.40, compared to its 10-day moving average of 13.51 and its 50-day moving average of 14.37 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is down $0.21 to $187.67 on stable international markets.

Calls with increasing volume at CBOE:
SPY  5/17/2014    19 71K contracts
PFE  6/21/2014    32 16K
AMAT 1/17/2015  22 13K
IWM  5/17/2014 110 13K
QQQ  5/17/2014  88 12K