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