Blogging Options: CBOE Morning Update 7.24.14

Ford up $0.30, GM drops $0.70 and CAT falls ~$3 as earnings keep rolling in this morning.  AMR Group declares first dividend in 34 years.  Weekly Claims fall again.  Overseas markets drift higher.  Volatility as an asset class:

Qualcomm (QCOM) is down $3.83 to $77.76  in the premarket after the chip manufacturer reported a 42% increase in Q3 results, however said its licensing and patents was encountering “significant challenges” in China. July weekly call option implied volatility is at 58, August is at 20, October and January is at 17; compared to its 26-week average of 20.

Gilead (GILD) is up $0.92 to $91.26 after reporting Q2 EPS $2.36, compared to consensus $1.79 and said its new hepatitis C treatment, Sovaldi, had $3.48B in Q2 sales. July weekly call option implied volatility is at 77, August is at 39, September is at 31, November is at 31; compared to its 26-week average of 33.

Facebook (FB) is higher by $6.00 to $77.25 in the premarket after the social-media giant reported that Q2 profit more than doubled and revenue topped estimates for the ninth straight quarter. The social media company said about 62% of its ad revenue comes from mobile devices. July weekly call option implied volatility is at 108, August is at 45, September is at 39, December is at 37; compared to its 26-week average of 42.

Options expected to be active @ CBOE:  FB POT F GM LLY QCOM GILD DNKN HOT GM CAT F AAL BMY LLY HSY UA

CBOE S&P 500 BuyWrite Index (BXM) at 1097.08, compared to its 10-day moving average of 1089.57 cboe.com/BXM

OE DJIA BuyWrite Index (BXD) at 271.28, compared to its 50-day moving average of 267.47 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 10.83, compared to its 10-day moving average of 11.07. 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 39c to 27.79.

CBOE Volatility Index (VIX) closed at 11.52, compared to its 10-day moving average of 12.26 and its 50-day moving average of 11.77. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently up 39c to $199.01 on strong corporate results.

Calls with increasing volume at CBOE:

QQQ 7/25/2014 96 38K contracts
PBR 9/20/2014 18 24K
QQQ 8/1/2014 97.50 21K
MSFT 8/16/2014 48 21K
VXX 9/20/2014 35 20K
AAPL 7/25/2014 97 18K
SPY 7/25/2014 198 14K