Blogging Options: CBOE Morning Update 6.17.14

Housing Starts fell 6.5% in May, and April starts were revised lower by 0.5%. CPI rose 0.4% (+0.2% expected), Food up 0.5% and energy +0.9% pushed the Core Rate higher.  The euphoria of the US World Cup victory not enough to keep pre-market indices higher.  Metals sold off on the data, Treasury yield moves higher.  Last day to trade June VIX futures, settle tomorrow AM.  Volatility as an asset class

Booz Allen (BAH) is down $0.46 to $21.37 in the premarket after the consulting company was downgraded to Underperform from Buy at BofA/Merrill due to rich valuation. Price target remains $22. Overall option implied volatility of 41 is above its 26-week average of 30.

Netflix (NFLX) is up $7.74 to $438 on Morgan Stanley assuming coverage with an Overweight rating from an Equal Weight rating. The firm is bullish on Netflix’s high U.S. margin visibility and long-term profit potential and expects new market penetration to leverage content and long-term margins. Price target is $500.   Overall option implied volatility of 39 is near its 26-week average of 40.

VIX methodology for IBM $VXIBM closed at 20.47, above its 50-day moving average of 18.25 cboe.com/VXIBM

CBOE Total Put/Call Ratio 0.71 Index Put/Call Ratio 0.78 Equity Put/Call Ratio 0.48 CBOE.com
CBOE Crude Oil Volatility Index (OVX) @ 19.52, WTI trades below $107.  CBOE.com/OVX

Options expected to be active @ CBOE: ALU TWTR ANFI YPF ACHN HIMX

CBOE S&P 500 BuyWrite Index (BXM) at 1079.68, compared to its 10-day moving average of 1078.98 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 267.73, compared to its 50-day moving average of 263.32 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.54, compared to its 10-day moving average of 10.84. 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 down 34c to 31.43

CBOE Volatility Index (VIX) closed at 12.65, compared to its 10-day moving average of 11.74 and its 50-day moving average of 12.99.

SPDR S&P 500 ETF Trust (SPY) is off 0.21 to $194.08 as emerging markets reverse four-days of losses and US economic news worries traders.

Calls with increasing volume at CBOE:
GLD 7/19/2014 124 24K contracts
SPY 1/17/2015 210 20K
FIO 9/20/2014 7 10K
SD 6/21/2014 7 9K
EEM 6/21/2014 43.50 9K
AAPL 6/21/2014 92.86 8K
FB 6/21/2014 65 6K