Blogging Options: CBOE Morning Update 8.18.14

Stocks open higher on lack of news out of Ukraine, SPX up 11 points.  Good volume on Expiration Friday, as as 22.6mm contracts trade.  SPX with ~1.2mm, VIX showed 870K.  VIX futures very active at 345K.  Oil lower, 10-year 2.37%.  Homebuilders showed optimism in recent report but FNMA said sales will slow in last half of year.   Volatility as an asset class:

Tesla Motors (TSLA) is up $1.49 to $263.50 on CEO warns warranty change to have ‘moderately negative’ EPS impact. August weekly call option implied volatility is at 40, September is at 42, December is at 41; compared to its 26-week average of 50.

Kandi Technologies (KNDI) is up 32c to $18.05,  the number of electric cars produced in China jumped ~70% in the first seven months of the year, versus last year, to about 14,000, according to Xinhua. September call option implied volatility is at 73, December is at 72, January is at 74; compared to its 26-week average of 87.

‘Gang of Four’ overall option implied volatility; AAPL 25 AMZN 25 FB 28 GOOG 20.

Options expected to be active @ CBOE:  FDO DG DLTR URBN HD LOW TJX MDT

CBOE SKEW INDEX (SKEW) at 135.42, compared to its 50-day MA of 132.42. SKEW measures the purchase of out-of-the-money S&P 500 Index puts that require a very large downside move to profit from long put positions. An increase of this index indicates greater expectations for an extreme down move.

CBOE S&P 500 BuyWrite Index (BXM) at 1093.16, compared to its 10-day moving average of 1082.21 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 266.86 compared to its 50-day moving average of 267.78 cboe.com/micro/bxd/

CBOE S&P 500 Short-Term Volatility Index (VXST) at 14.34, compared to its 10-day moving average of 14.90. 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 1.10 to 27.77

CBOE Volatility Index (VIX) closed at 13.15, compared to its 10-day moving average of 14.76 and its 50-day moving average of 12.60. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently up 1.25 to $196.96 as Ukraine concerns ease up into Janet Yellen speaking on Friday, her first appearance at Jackson Hole as Fed chair.

Calls with increasing volume at CBOE Friday included:

XLF   9/20/2014   23   31K contracts
SPY   8/16/2014 196  30K
DIA   9/20/2014 170  21K
AAPL 8/16/2014  97.86 15K
XLK   9/20/2014  40   15K

Puts with increasing volume at CBOE:

SPY  8/16/2014  195  60K contracts
IWM 8/16/2014  113  25K
VXX  8/16/2014  29    24K