Premier Putin talks on slow news day. Interest rate complex closes at noon CDT in advance of long weekend. Volatility as an asset class
Gap (GPS) is flat at $40.86 in the premarket on Q1 earnings beating consensus as EPS came in at $0.58 and revenue edged up 1.1% to $3.77B. June call option implied volatility is at 29, July and September is at 23; compared to it 26-week average of 28.
Hewlett-Packard (HPQ) is up$0.20 to $32 on Q2 net profit sliding to $1.3B from $1.1B a year earlier and saying it’s slashing another 11,000-16,000 positions, adding to the 34,000 cuts that it has already announced. June call option implied volatility is at 24, July is at 22, August is 23; compared to its 26-week average of 31.
Aeropostale (ARO) is down $0.72 to $3.79 in the premarket after reporting Q1 loss widened as sales continue to slide results. June all option implied volatility is at 88, July is at 65, October is at 61; compared to its 26-week average of 61.
Options expected to be active @ CBOE: HPQ ALU NBG GME KERX FB FEYE ARUN VIX
CBOE S&P 500 BuyWrite Index (BXM) at 1070.42, compared to its 10-day moving average of 1065.17 cboe.com/BXM
CBOE DJIA BuyWrite Index (BXD) at 265.13, compared to its 50-day moving average of 260.46 cboe.com/micro/bxd/
CBOE S&P 500 Short-Term Volatility Index (VXST) at 10.27, compared to its 10-day moving average of 11.25. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2
iPath S&P 500 VIX Short-Term Futures (VXX) down 12c to 35.12
CBOE Volatility Index (VIX) closed at 12.03, compared to its 10-day moving average of 12.43 and its 50-day moving average of 13.96 cboe.com/VIX
SPDR S&P 500 ETF Trust (SPY) is up 0.13 to $189.72 as the German Ifo institute’s business-climate index declining to its lowest level so far this year.
Calls with increasing volume at CBOE:
XLF 1/17/2015 23 31K contracts
WY 7/19/2014 38 30K
SPY 6/21/2014 190 14K
EPI 7/19/2014 23 14K
IWM 6/21/2014 111 11K
TSO 6/21/2014 60 9K
BBY 5/23/2014 25.50 6K