Blogging Options: CBOE Morning Update 5.23.14

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