Blogging Options: CBOE Morning Update 6.9.14

Asian stocks and most European indices fractionally higher in what is expected to be a slow news week.  VIX begins the week below 11 at 10.73.  World Cup Week begins Thursday as host Brazil gets the first game.  Volatility as an asset class

Idenix (IDIX) is up $17 to $24.23 in the premarket on Merck (MRK) acquiring the hepatitis C drug developer for $3.85B, $24.50 per share in cash. Overall option implied volatility of 69 is below its 26-week average of 85.

Family Dollar (FDO) is up $7.30 to $67.75 on Carl Icahn reported a 9.39% stake in the discount retailer. Overall option implied volatility of 26 is below its 26-week average of 30.

Apple (AAPL) is down $0.12c to $92.10 in the premarket after a 7-for-1 stock split. Overall option implied volatility of 23 compares to its 26-week average of 25.

VIX methodology for Apple $VXAPL closed at 24.35, above its 50-day MA of 22.57 CBOE.com/VXAPL

Options expected to be active @ CBOE: AAPL FDO DJ HSH ARMH GOLD JD BDSI

CBOE S&P 500 BuyWrite Index (BXM) at 1079.32, compared to its 10-day moving average of 1076.77 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 267.84, compared to its 50-day moving average of 262.28 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 9.25, compared to its 10-day moving average of 10.39. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) down 17c to 30.18

CBOE Volatility Index (VIX) closed at 10.73, compared to its 10-day moving average of 11.54 and its 50-day moving average of 13.21.

SPDR S&P 500 ETF Trust (SPY) is down 0.12 to $195.25 as Asian stocks trade at their highest levels in nearly three years, after the Dow Jones and S&P 500 ended at new records this past Friday.

Calls with increasing volume at CBOE Friday:

F        9/20/2014   18  51K contracts
XLK  6/21/2014   38  37K
AAPL 6/6/2014  650  16K

Puts with increasing volume at CBOE:

SPY  12/20/2014  155  81K contracts
IWM  7/19/2014   108  50K
F         1/15/2016     15  23K