Blogging Options: CBOE Morning Update 5.22.14

Average option volume yesterday with ~14.9mm contracts trading.  SPX with 981k and VIX traded 1, 273,000 contracts.  Spy with over 1 million contracts and VIX Futures traded in excess of 15ok.  Weekly jobless disappointed big time but PMI beat, so conflicting indicators and long weekend coming up have markets up fractionally.  GOOG up $4, BA higher by $1 in early trade.  Volatility as an asset class:

Williams-Sonoma (WSM) opened higher, and is up $4.62 to $68.35 after quarterly results beat on top and bottom lines. June call option implied volatility is at 31, August is at 24, January is at 22; compared to its 26-week average of 23.

SINA (SINA) is down $3.01 to $44.85 after the online media company issued Q2 guidance below analyst estimates. May weekly call option implied volatility is at 94, June is at 54, July is at 46, September is at 47; compared to its 26-week average of 50.

Lorillard (LO) is off $2.75.  Shares rallied 10.4% to $62.63 yesterday after Reuters reported that Reynolds American (RAI) is in advanced talks to acquire its cigarette making peer. June call option implied volatility is at 44, July is at 34, September is at 26; compared to its 26-week average of 25.

Options expected to be active @ CBOE: HPQ LO RAI NFLX WSM BBY TIVO GPS HES MCP EBAY LTM VIX

CBOE S&P 500 BuyWrite Index (BXM) at 1069.76, compared to its 10-day moving average of 1064.03 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 265.06, compared to its 50-day moving average of 260.33 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 10.47, compared to its 10-day moving average of 11.48. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) down 1c to 35.21

CBOE Volatility Index (VIX) unchanged at 11.91, compared to its 10-day moving average of 12.57 and its 50-day moving average of 14.01 cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is up $0.21 to $189.36  A preliminary reading on China’s manufacturing came in ahead of expectations and Japan’s Nikkei 225 rose 2.1%.

Calls with increasing volume at CBOE Wednesday:

NOK 7/19/2014    8   55K contracts
DIA 6/21/2014  162   11K
DXJ 8/16/2014  50.38 11K
VXX 6/21/2014    40 10K
SPY 6/21/2014  192 8K
FB 5/23/2014     60   6K
IWM 6/6/2014 113   5K

Puts with increasing volume at CBOE:

SPY 6/21/2014    180  57K contracts
CLF 8/16/2014      16   25K
IWM 5/30/2014   109  19K
DTV 6/21/2014  82.50 10K