CBOE Mid-Day Update 5.28.14

Fairly slow day as major averages mixed,  markets digesting yesterdays move to new highs.  St. Jude up 3%, Allergan off ~4%.  8.5 mm options trade as of mid-day, with SPX at 360k and VIX at 310k traded. 10-year continues to drop, most recently at 2.445%.  Volatility as an asset class
 
McDonald’s (MCD) is down $0.79 to $101.57, expects to return to shareholders through a combination of dividends and share repurchases, a 10%-20% increase over amount of cash returned between 2011 and 2013. MCD also expects to refranchise at least 1,500 restaurants by the end of 2016, primarily in Asia/Pacific, Middle East, Africa & Europe. MCD was initiated with a Strong Sell at Standpoint. June call option implied volatility is at 12, July is at 11, August and December is at 12; compared to its 26-week average of 13.

First Solar (FSLR) is up $1.01 to $62.27 after research firm Stifel resumed coverage with a Buy ratings and a $75 price target. First Solar develops solar energy plants.  May weekly call option implied volatility is at 45, June and July is at 42, August is at 45, and December is at 43; compared to its 26-week average of 54.
 
DSW (DSW) is down $8.81 to $23.78 after the shoe retailer hit multi-year lows after earnings and guidance. June call option implied volatility is at 40, July is at 35 and October is at 33; compared to its 26-week average of 28.

CBOE Low Volatility Index (LOVOL) is recently up 2c to 168.26, near an all-time. cboe.com/LOVOL

Actives at CBOE:  AAPL TSLA NFLX FB TWTR MCD WLT DOW QIHU  
 
Stocks with increasing volume @ CBOE: AUY ALLE NEPT WT COST
 
CBOE S&P 500 Short-Term Volatility Index (VXST) up 0.3% to 10.68; compared to its 10-day moving average of 11.02. VXST is a market-based gauge of expectations of 9-day volatility stks.co/r0CS2
 
CBOE DJIA BuyWrite Index (BXD) up 0.1% 266.33, compared to its 50-day moving average of 261. cboe.com/micro/bxd/
 
CBOE Volatility Index (VIX) up 0.3% to 11.54. VIX June 16 and 18 calls active on 275K contracts @ CBOE cboe.com/VIX
 
iPath S&P 500 VIX Short-Term Futures (VXX) down 1c to 33.85.
 
CBOE DJIA Volatility Index (VXD) up 1.6% to 11.04; compared to its 50-day moving average of 12.81.  
 
CBOE Nasdaq-100 Volatility Index (VXN) up 1.2% to 13.89; compared to its 50-day moving average of 17.32  
 
S&P 100 Options (OEX) recently up 62c to $848.02 as stocks trade near record highs on limited economic data.