Blogging Options: CBOE Morning Update 6.16.14

Futbol this afternoon as US starts World Cup play.  Hockey and basketball over.  Markets soft overseas, especially Europe.  Commodities higher.  Empire FED results mixed.  Triple Witch week begins, and the weekend was beautiful in Chicago.  Volatility as an asset class

Covidien (COV) is up $21.74 to $93.78 in the premarket on Medtronic (MDT) purchasing in a cash-and-stock transaction valued at $93.22 per Covidien share or a total of approximately $42.9B.  Overall option implied volatility of 19 is at its 26-week average.

Williams (WMB) is up $5.32 to $52.50 on the acquisition of the 50% general partner interest in Access Midstream Partners L.P. (ACMP) held by Global Infrastructure Partners II.  Overall option implied volatility of 19 is below its 26-week average of 25.

TW Telecom (TWTC) is 1up $4.36 to $40.70 in the premarket after announcing that they have entered into a definitive agreement, whereby Level 3 (LVLT) will acquire Tw Telecom in a stock-and-cash transaction valued at $40.86 per share based on market close as of June 13. Stockholders will receive $10 cash and 0.7 shares of Level 3 common stock for each share of Tw Telecom common stock that is owned at closing. Overall option implied volatility of 34 is below its 26-week average of 25.

CBOE Crude Oil Volatility Index (OVX) @ 19.47, WTI above $107.  CBOE.com/OVX

Options expected to be active @ CBOE: WFT MDT COV BHP CCL EOG WMB IGT AMT TGT FIO NOK BLUE

CBOE S&P 500 BuyWrite Index (BXM) at 1079.52, compared to its 10-day moving average of 1078.76 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 267.69, compTagsared to its 50-day moving average of 263.17 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 11.48, compared to its 10-day moving average of 10.64. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) is recently up 44c to 32.24

CBOE Volatility Index (VIX) closed at 12.18, compared to its 10-day moving average of 11.64 and its 50-day moving average of 13.

SPDR S&P 500 ETF Trust (SPY) is down $0.38 to $193.75 as European stocks are down as Iraq violence spreads.

Calls with increasing volume at CBOE:

EEM 6/21/2014 43.50 14K contracts
MSFT 6/21/2014 41.50 12K
SPY 6/13/2014 19 11K
BTU 7/19/2014 17 10K
IGT 7/19/2014 20 10K
AAPL 6/13/2014 91.43 10K
BBRY 9/20/2014 10 9K

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