Blogging Options: CBOE Morning Update 7.25.14

Durable Goods for June increased 0.7% (May lowered from -0.9% to -1.0%). June DG were expected to gain 0.5% to 0.6%, so a slight beat.  ABBV beats, Pandora showed revenue increasing but quarterly losses grew. Option volume average yesterday as CBOE did ~4.2mm of 16.6mm contracts.  CBOE group in Shanghai wraps up week long option educational event today.  Volatility as an asset class

Amazon.com (AMZN) is down $38.21 to $320.40 in the premarket on Q3 margin outlook surprising to the downside. July weekly call option implied volatility is at 140, August is at 36, September is at 29, October is at 28; compared to its 26-week average of 30.

Visa (V) is down $6.15 to $216.59 after lowering annual revenue growth. July weekly call option implied volatility is at 39, August is at 20, September is at 17, December is at 16; compared to its 26-week average of 22.

Starbucks (SBUX) is down $2.30 to $78.15 in the premarket on Q3 earnings rising 23% on stronger sales. July weekly call option implied volatility is at 85, August is at 23, October and January is at 18; compared to its 26-week average of 22.

Options expected to be active @ CBOE: AMZN SBUX V P BIDU XRX LPNT XRX LEA LYB SLAB SWK TYC DECK WCG

CBOE S&P 500 BuyWrite Index (BXM) at 1097.62, compared to its 10-day moving average of 1091.61 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 271.39, compared to its 50-day moving average of 267.61 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 10.88, compared to its 10-day moving average of 11.75. 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 50c to 28.49.

CBOE Volatility Index (VIX) closed at 11.84, compared to its 10-day moving average of 12.18 and its 50-day moving average of 11.77. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is off 0.40 to $198.25 as stocks pullback from two-week highs.

Calls with increasing volume at CBOE:

IWM   8/16/2014  121  21K contracts
DHI    9/20/2014   24  15K
ARCP 8/16/2014   13  13K
FB      7/25/2014   76  12K
AAPL 7/25/2014   97  12K
VXX     8/1/2014    41  11K
T        9/20/2014   37  10K

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