Blogging Options: CBOE Morning Update 5.13.14

Huge storms on the north side of Chicago last night. 2″+ in 30 minutes.  April Retail Sales announced as a gain of 0.1% (up 0.4% expected, up 1.5% March), X-Auto dropped 0.1%.  Import prices dropping somewhat of an offset – lower inflation.  T possible merger with DirectTV being watched by traders.  Overseas markets firm.  Volatility as an asset class

DIRECTV (DTV) is up $3.34 to $90.50 in the premarket after reports stating that AT&T (T) is in talks to acquire the satellite TV operator for $100 per share.  Overall option implied volatility of 32 is above its 26-week average of 26.

Keurig Green Mountain (GMCR) is up $5.59 to $116.50 on Coca-Cola (KO) agreeing to purchase additional shares, bringing Coke’s beneficial ownership in Keurig up to 16%, according to a regulatory filing. The Coca-Cola unit owns about 19.5M shares of Keurig subsequent to the transaction.  Overall option implied volatility of 35 is below its 26-week average of 45.

Rackspace (RAX) is up $3.44 to $31 after reporting first quarter results and guidance that beat expectations. Overall option implied volatility of 77 is above its 26-week average of 43.

Options expected to be active @ CBOE: GMCR KO RAX K AZN DTV FB PLUG HALO RDEN
CBOE S&P 500 BuyWrite Index (BXM) at 1062.94, compared to its 10-day moving average of 1058.32 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 264.46, compared to its 50-day moving average of 259.44 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 11.20, compared to its 10-day moving average of 12.33. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) down 14c to 36.98

CBOE Volatility Index (VIX) at 12.23, compared to its 10-day moving average of 13.23 and its 50-day moving average of 14.29 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently up 37c to $190.15 after a record close.

Calls with increasing volume at CBOE:

NOK 7/19/2014 8 29K contracts
EEM 12/20/2014 46.50 20K
SPY 5/17/2014 192 16K
HST 5/17/2014 21 15K
CHK 10/18/2014 42 12K
SPLS 6/21/2014 14 10K