Blogging Options: CBOE Morning Update 6.25.14

Whack.  Q1 GDP Final showed the economy contracted 2.9% (pessimistic traders were talking a drop of 2.1%). May Durables -1% and May Core -0.1%. Stock futures had been up, now off across the board.  10-year 2.54%.  Over 22k VIX Futures trade in extended hours.  MON extends buyback and raises guidance, up $5.  Volatility as an asset class:

General Mills (GIS) is down $1.80 to $51.90 in the premarket on new initiatives to scale back costs and increase earnings after posting less than expected Q4 sales.  July call option implied volatility is at 19, October is at 14 and January is at 13; compared to its 26-week average of 15.

Apollo Group (APOL) is flat at $29.28 after the educator reported Q3 EPS 76c ex-items, compared to consensus 66c. Reported revenue was $799.9M, compared to consensus $794.43M. June call option implied volatility is at 88, July is at 51, November is at 39; compared to its 26-week average of 37.

Vertex (VRTX) is off $0.53 to $93 in the premarket a day after the company reported favorable results for a trial of its Vx809 drug.  UBS raised its price target was raised to $115 from $93 as they see upside to their pricing assumptions and potential for strategic interest from another company. Bernstein raised its price target to $107 from $65.  Leerink raised its price target raised to $125 from $100. July weekly call option implied volatility is at 57, July is at 45, August is at 49, October is at 47; compared to its 26-week average of 73.

Options expected to be active @ CBOE: HLT SDRL CCL SDRL GIS SHPG VRTX AAPL

CBOE S&P 500 BuyWrite Index (BXM) at 1074.06, compared to its 10-day moving average of 1078.73 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 266.19, compared to its 50-day moving average of 264.55 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 12.01, compared to its 10-day moving average of 11.23. 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 19c to 29.67

CBOE Volatility Index (VIX) closed at 12.13, compared to its 10-day moving average of 11.62 and its 50-day moving average of 12.51. VIX 11.02 open, 12.27 high, 10.87 low.  CBOE.com

SPDR S&P 500 ETF Trust (SPY) is recently up 21c to $194.91 as European stocks are down for the fourth day.

Calls with increasing volume at CBOE:
F      7/3/2014 17.50 26K contracts
SPY 7/3/2014   197 18K
S     1/17/2015   10 16K
CVX 9/20/2014 130 15K
FB   6/27/2014  67  7K

Puts with increasing volume at CBOE:
XLE  7/19/2014    98 27K contracts
IWM 6/30/2014 118 20K
SPY  7/19/2014 185 19K