Blogging Options: CBOE Morning Update 5.9.14

Overseas markets lower.  Ralph Lauren (RL, $145, off $8) matches estimates but moves guidance lower.  FUEL with negative comments pushes shares down by $7.  10-year 2.62%. Don’t forget Mothers Day.  Volatility as an asset class

Apple (AAPL) is down $2.98 to $585. in the premarket on  talks to acquire headphone maker Beats Electronics for $3.2B. This could be announced early next week, reports The Financial Times,  At $3.2B, the deal would be Apple’s largest acquisition ever. Apple weekly option implied volatility is at 21, June and July is at 19, August is at 20; compared to its 26-week average of 24.

Gap (GPS) is up $1.61 to $40.85 after reporting April same-store sales that grew 9% and first quarter revenues that beat expectations. Overall option implied volatility of 30 is near its 26-week average of 29.

SunEdison (SUNE) is down 0.16 to $16.95 in the premarket after being downgraded to Buy from Conviction Buy at Goldman on Q1 results. May weekly call option implied volatility is at 123, May is at 67, July is at 65, October is at 64; compared to its 26-week average of 66.

Options expected to be active @ CBOE: ALU PLUG FB YHOO TWTR TSLA NFLX RL VIX

CBOE S&P 500 BuyWrite Index (BXM) at 1059.10, compared to its 10-day moving average of 1056.24 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 263.35, compared to its 50-day moving average of 259.16 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.51, compared to its 10-day moving average of 12.89. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) up 6c to 39.17

CBOE Volatility Index (VIX) at 13.43, compared to its 10-day moving average of 13.52 and its 50-day moving average of 14.35 cboe.com/VIX

$VIX Avg. Daily Volume 2014 y-t-d 730,274 contracts

SPDR S&P 500 ETF Trust (SPY) is recently down 33c to $187.34 as investors pore over the multitude of earnings reports that were released last night and this morning.  Wholesale inventories report will be unveiled at 10:00 am ET.

Calls with increasing volume at CBOE:
CCJ 1/17/2015 25 32K contracts
SPY 6/21/2014 192 15K
KMI 9/20/2014 35 10K
VXX 1/17/2015 60 10K
MU 7/19/2014 26 6K