Blogging Options: CBOE Morning Update 7.17.14

Overseas markets reeling after new Russian financial sanctions.  June Housing Starts with a huge miss (by ~125k) and May starts revised lower by 25k not helping stock futures in US.  10-year back below 2.5%.  20k VIX Futures trade i early session.  Volatility as an asset class

eBay (EBAY) is up 60c to $51.30 in the premarket after the e-commerce company reported an inline Q2 and offered a cautious outlook.  July call option implied volatility is at 49, August is at 23, October is at 22; compared to its 26-week average of 27.

SanDisk (SNDK) is down $10.33 to $97.50 after the flash memory maker Q2 revenues rose 4.6%. July call option implied volatility is at 79, August is at 38, October is at 34; compared to its 26-week average of 30.

Las Vegas Sands (LVS) is down $1.80 to $72.70 in the premarket after the casino and resort operator reported a Q2 profit increase of 27%. July call option implied volatility is at 58, August is at 27, September is at 25, December is at 24; compared to its 26-week average of 28.

Options expected to be active @ CBOE: MS BAX MU TWX FOXA BHI SAP UNH DRC SCSS LVS SNDK EBAY BX TWTR MU TWX FOXA BHI SAP

CBOE equity option volume; 1,544,338 call, 770,552 puts. 2,314,890 total CBOE.com

CBOE S&P 500 BuyWrite Index (BXM) at 1089.02, compared to its 10-day moving average of 1085.30 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 270.44, compared to its 50-day moving average of 266.71 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 10.26, compared to its 10-day moving average of 10.57. 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 72c to 27.99.

CBOE Volatility Index (VIX) closed at 11, compared to its 10-day moving average of 11.55 and its 50-day moving average of 11.83. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down $1.12 to $196.84 on a more U.S. sanctions imposed on Russia.

Calls with increasing volume at CBOE:

IYR 8/16/2014 73 30K contracts
HPQ 8/16/2014 36 29K
NOK 1/17/2015 8 19K
BAC 8/16/2014 16 17K
INTC 10/18/2014 36 15K
SIRI 1/17/2015 3.50 14K
XOM 8/16/2014 110 13K
PFE 7/19/2014 30 11K
AAPL 7/19/2014 95 10K
ABBV 8/16/2014 57.50 10K

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Marty Kearney

Mr. Kearney began his long association with the CBOE when he became an independent Market Maker in early 1981. Mr. Kearney traded options full time on the trading floor until 1992 and periodically thereafter until 1996. In early 1992 he became a founding partner and Registered Options Principal of a brokerage firm based in…