Blogging Options: CBOE Morning Update 7.16.14

Time Warner (TWX) the talk of trading desks as Fox reportedly bid ~$86. per share in cash and stock for Time Warner.  Time’s Board reportedly rejected the bid. TWX is higher by $11 on 11 million shares trading.  June PPI rose 0.4% (+0.2% expected, down 0.2% last month), Core PPI (X-Food & Energy) up 0.2%. BAC beat estimates but took a $4B charge.  Average option day yesterday but VIX Futures active with ~236k. Volatility as an asset class

Intel (INTC) is up $1.59 to $33.30 in the premarket on the chip maker reporting Q2 net profit increase of 40% after shipping a record number of microprocessors and gives strong Q3 revenue guidance. July call option implied volatility is at 30, August is at 20, October is at 18; compared to its 26-week average of 19.

Yahoo (YHOO) is down $1.04 to $34.57 after the internet portal reported mixed Q2 earnings and lowered guidance.  July call option implied volatility is at 46, August is at 43, September is at 37, January is at 34; compared to its 26-week average of 33.

IBM (IBM) is up $3.77 to $192.25 in the premarket after announcing an enterprise mobile partnership with Apple (AAPL), which is up $2.06 to $97.38.

VIX methodology for IBM (VXIBM) @ 21.06, above its 50-day moving average of 18.63 cboe.com/VXIBM

VIX methodology for Apple (VXAPL) @ 28.62; above its 50-day moving average of 22.41 cboe.com/VXAPL

Options expected to be active @ CBOE: TWX FOXA CMCSA DIS VIAB CBS AMZN NFLX GOOGL IBM AAPL YHOO IGT EBAY BAC VIX

CBOE S&P 500 BuyWrite Index (BXM) at 1086.68, compared to its 10-day moving average of 1084.09 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 269.83, compared to its 50-day moving average of 266.41 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 11.08, compared to its 10-day moving average of 10.56. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

iPath S&P 500 VIX Short-Term Futures (VXX) at 27.95

CBOE Volatility Index (VIX) closed at 11.96, compared to its 10-day moving average of 11.53 and its 50-day moving average of 11.89. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 37c to $197.23 as Bank of America (BAC) profit drops 43% and Time Warner (TWX) rejecting an $80 offer from 21st Century Fox (FOXA), according to media reports.

Calls with increasing volume at CBOE:

SPY 9/20/2014 205 29K contracts
GDX 12/20/2014 35 20K
BAC 7/19/2014 16 17K
VXX 7/25/2014 39 16K
AAPL 7/19/2014 95 12K
QQQ 7/19/2014 96 8K