Slow economic news week coming up. Quite night in Ukraine, but Chinese deploy a few divisions on Vietnamese border. Stocks lower overseas, metals higher. VIX May expiration Wednesday. Good weather for Notre Dame graduation yesterday. Volatility as an asset class:
DirecTV (DTV) is unchanged at $86.18 in the premarket on AT&T (T) offering a stock-and-cash takeover for $95 per share. Option implied volatility of 31 is above its 26-week average of 26.
AT&T is down $0.92 to $35.82. Overall option implied volatility of 15 is near its 26-week average of 16.
AstraZeneca (AZN) is down $8.73 to $71.57 after rejecting Pfizer’s (PFE) sweetened takeover offer of $120B. Overall option implied volatility of 30 is above its 26-week average of 20.
Pfizer is recently up 44c to $29.60 in the premarket. Overall option implied volatility of 19 is at its 26-week average.
Options expected to be active @ CBOE: T DISH DTV AMX AZN FB GOGO SPLS URBN SPLS
CBOE S&P 500 BuyWrite Index (BXM) at 1065.90, compared to its 10-day moving average of 1061 cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) at 264.26, compared to its 50-day moving average of 259.97 cboe.com/micro/bxd/
CBOE S&P 500 Short-Term Volatility Index (VXST) at 11, compared to its 10-day moving average of 11.93. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2
iPath S&P 500 VIX Short-Term Futures (VXX) up 20c to 36.74
CBOE Volatility Index (VIX) closed at 12.44, compared to its 10-day moving average of 12.89 and its 50-day moving average of 14.12 cboe.com/VIX
SPDR S&P 500 ETF Trust (SPY) is down $0.39 to $187.66 as the Chinese property sector cooled further in March as new-home prices increased in 44 out of 70 Chinese cities on a monthly basis, down from 56 in April and the lowest number since October 2012.
Calls with increasing volume at CBOE:
SPY 5/17/2014 188 36K contracts
GE 6/21/2014 27 20K
QQQ 5/17/2014 87 14K
IWM 5/17/2014 109 14K
S 5/17/2014 9 11K
EFA 6/21/2014 68 10K