Blogging Options: CBOE Mornng Update 6.11.14

World Bank cut global economic growth forecast from +3.2% down to +2.8%.  Overseas markets weak before the US opening.   Metals and Oil fractionally lower.  Implication of #2 Republican in US House losing primary being weighed.  Slow news day expected. Volatility as an asset class:

Ulta Salon (ULTA) is up $9.04 to $94.35 in the premarket after reporting better than expected Q1 results, giving Q2 guidance, and reaffirming FY14 guidance. June call option implied volatility is at 56, July is at 41, Sep is at 38, Dec is at 36; compared to its 26-week average of 42.

SanDisk (SNDK) is higher $1.00 to $98.10 after the data storage solutions provider was upgraded to Buy from Underperform at BofA/Merrill on reduced competitive threats, strong earnings momentum, more stable ASPs and management’s commitment to dividends and buybacks. Price target raised to $125 from $80.  Overall option implied volatility of 30 is near its 26-week average of 29.

Micron (MU) is up $1.00 to $30.51 in the premarket after the memory manufactures was upgraded to Buy from Underperform and its price target raised to $40 from $22 at BofA/Merrill.  Overall option implied volatility of 41 is below to its 26-week average of 44.

Options expected to be active @ CBOE:  ULTA NKTR OREX LULU RH HLT BAC ACHN MU SYNA TVIX RMBS

CBOE S&P 500 BuyWrite Index (BXM) at 1079.76, compared to its 10-day moving average of 1077.87 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 267.83, compared to its 50-day moving average of 262.70 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 9.52, compared to its 10-day moving average of 10.31. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) up 67c to 30.88

CBOE Volatility Index (VIX) closed at 10.99, compared to its 10-day moving average of 11.47 and its 50-day moving average of 13.08.

SPDR S&P 500 ETF Trust (SPY) is down $0.62 to $194.98 as European stocks fell from six-year high.

Calls with increasing volume at CBOE:

FB    7/19/2014   62.50 35K contracts
SPY  8/16/2014  200 30K
KGC 11/22/2014   5 30K
CBS  6/21/2014   55 24K
IWM 6/21/2014  120 20K
MCP 9/20/2014  3 15K

Puts with increasing volume at CBOE:

IWM  6/21/2014  120 20K
NOK  1/17/2015   7   20K
VXX   7/19/2014  27  18K
SPY   6/21/2014  194 17K
AAPL 6/21/2014  94.29 14K
EEM  7/19/2014  42.50 12K