Blogging Options: CBOE Morning Update 5.14.14

Stocks are soft this morning after the PPI rose 0.6% in April (+0.5% March), the highest rate in over four years.  Asian stocks mixed, European shares lower.  10-yr 2.58%.  Volatility as an asset class

Sony (SNE) is down $1.08 to $16.56 in the premarket after the Japanese technology company predicted its sixth annual loss in seven years because of problems at its consumer electronics division.  May call option implied volatility is at 48, June is at 30, October is at 27; compared to its 26-week average of 32.

Take-Two (TTWO) is down $0.78 to $19.65 after guiding below analyst estimates for the Q1. May call option implied volatility is at 83, June is at 43, October is at 38; compared to its 26-week average of 42.

Fossil (FOSL) is down more than $7 in the premarket after the watch and accessory maker sees Q2 EPS 90c-97c, consensus $1.16. Overall option implied volatility of 67 is above its 26-week average of 34.
Options expected to be active @ CBOE: M DTV SODA JCP SNE P CSCO DE

CBOE S&P 500 BuyWrite Index (BXM) at 1063.32, compared to its 10-day moving average of 1059.13 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 264.62, compared to its 50-day moving average of 259.61 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 10.75, compared to its 10-day moving average of 12.04. 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 37.24

CBOE Volatility Index (VIX) closed at 12.13, a nine-month low, compared to its 10-day moving average of 13.07 and its 50-day moving average of 14.22 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 31c to $189.65 after closing at record high for a second consecutive day.

Calls with increasing volume at CBOE:

IWM 6/21/2014 120 25K contracts
VALE 6/21/2014 14 20K
EEM 12/20/2014 50 20K
VXX 6/21/2014 37 19K
HR 5/17/2014 30 15K
WMB 5/17/2014 44 13K
SPY 5/17/2014 190 12K