Blogging Options: CBOE Morning Update 11.19.14

Data on October Housing Starts dragging stock futures lower, as it showed a drop of 2.8% (up 0.6% expected).  Permits up but not watched as much as starts.  10-year up to 2.36%, Asian stocks lower, Europe mixed to higher.  With a little luck, Buffalo N.Y. snowfall this week could exceed 100″.  Volatility as an asset class

Target (TGT) is up $2.04 to $69.60 in the premarket after reporting Q3 adjusted EPS 54c, consensus 47c November call option implied volatility is at 44, December is at 24, January is at 21; compared to its 26-week average of 19.

Vipshop (VIPS) is down $1.67 to $22.04 after the online Chinese discount retailer beat Q3 views and outlook was in line with street estimates. November call option implied volatility is at 104, December is at 64, January is at 53, February is at 54; compared to its 26-week average of 54.

Lowe’s (LOW) is up $2.46 to $60.99 in the premarket on sees FY14 revenue up 4.5%-5%. and sees FY14 SSS up 3.5%-4%. The company expects to open 6 home improvement and 4 hardware stores in FY14. November call option implied volatility is at 54, December is at 25, January is at 20, April is at 19; compared to its 26-week average of 22.

Options expected to be active @ CBOE:  SPLS LOW PETM VIPS JACK AVP TGT

CBOE/CBOT 10-year U.S. Treasury Note Volatility (VXTYN) @ 5.26; 52-week low 1.69, high 14.58 www.cboe.com/vxtyn

CBOE Crude Oil Volatility Index (OVX) at 33.17, compared to its 50-day moving average of 26.61 WTI Crude oil trades near $75. cboe.com/OVX

CBOE S&P 500 Skew Index (SKEW) at 132.03, compares to its 50-day moving average of 128.21.

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 1070.40 compared to its 10-day moving average of 1070 cboe.com/BXM

CBOE DJIA BuyWrite Index (BXD) at 263 compared to its 50-day moving average of 263 cboe.com/micro/bxd/

‏CBOE Nasdaq-100 Volatility Index (VXN) at 15.38; compared to its 50-day moving average of 17.42.

CBOE 3-Month Volatility Index (VXV) at 15.70, compared to its 50-day moving average of 16.91 cboe.com/VXV

CBOE S&P 500 Short-Term Volatility Index (VXST) at 11.49, compared to its 10-day moving average of 12.01. VXST is a market-based gauge of expectations of 9-day stks.co/r0CS2

Velocity Share VIX Short Term ETN (VIIX) at 37.96; compared to its 50-day moving average of 42.

iPath S&P 500 VIX Short-Term Futures (VXX) is recently at 28.10.

CBOE Volatility Index (VIX) at 13.86, compared to its 50-day moving average of 15.72. cboe.com/VIX

SPDR S&P 500 ETF Trust (SPY) is recently down 46c to $205.55 ahead of Federal Reserve release of October minutes.

Calls with increasing volume at CBOE:

OIH   11/22/2014    44 26K contracts
SPY   12/31/2014  215 23K
MCD    1/17/2015   95 15K
AAPL 11/22/2014 115 13K
WMB 11/22/2014   55 11K