Blogging Options: CBOE Morning Update 5.12.14

Hope you had a good Mothers Day. Friday option activity a little light.  SPX with an over 700k and VIX with ~580k options traded.  Slow pre-market.  Hillshire (covered below) main story.  Expiration Week.      Volatility as an asset class :

Pinnacle Foods (PF) is up $6.30 to $36.67 in the premarket on Hillshire Brands (HSH) acquiring for $6.6B, shares above $36.02 buyout level. Overall option implied volatility of 22 is near its 26-week average of 24.

Hillshire Brands (HSH) option implied volatility of 20 is near its 26-week average of 22. HSH also higher.

Twitter (TWTR) is up 88c to $32.92 in the premarket on the company could be attractive takeover target for Facebook (FB), Barron’s says and an upgraded to Buy from Neutral at SunTrust with a price target of $45.  Overall option implied volatility of 56 is near its 26-week average of 57.

Options expected to be active @ CBOE: PF HSH AZN TWTR BHP FB YHOO GOGO

CBOE S&P 500 BuyWrite Index (BXM) at 1060.50, compared to its 10-day moving average of 1057.28 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 263.87, compared to its 50-day moving average of 259.29 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 11.17, compared to its 10-day moving average of 12.61. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) down 30c to 37.97

CBOE Volatility Index (VIX) at 12.92, compared to its 10-day moving average of 13.40 and its 50-day moving average of 14.33 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently up 58c to $188.54 as stocks gained in Europe and developing markets.

Calls with increasing volume at CBOE:

SPY 5/9/2014 188 16K contracts

QQQ 5/17/2014 87 14K

RSH 10/18/2014 1.50 13K

IBN 6/21/2014 50 10K

KBH 7/19/2014 19 9K

IWM 5/9/2014 110 7K