Category Archives: Blogging Options

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CBOE Mid-Day Update 11.21.14

Volatility as an asset class Euro Currency Trust (FXE) is recently down $1.31 to $122.25 after Mario Draghi announced that the ECB is ready to expand its asset purchase programs. Overall option implied volatility of 8 is at its 26-week. Foot Locker (FL) is recently down $1.50 to $55.49 after reporting Q3 EPS 83c, compared [...]

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Blogging Options: CBOE Morning Update 11.21.14

China cutting rates and comments by the ECB have stocks soaring in early trading.  Asian stocks up modestly, European shares up 1% to 2%.  ECB buying Asset-Backed Securities but unclear as to type.  Dollar up again, Oil and Metals also higher.  Several Retailers reporting good sales this morning.   VIX Futures off ~2% in premarket trading [...]

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CBOE Mid-Day Update 11.20.14

Volatility as an asset class GoPro (GPRO) is recently down $4.90 to $74.24 after files to sell $800M in common stock for holders . November weekly call option implied volatility is at 67, December is at 58, January is at 53; compared to its 15-week average of 56. El Pollo LoCo (LOCO) is recently down [...]

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Blogging Options: CBOE Morning Update 11.20.14

Soft economic numbers overseas have US stock futures lower.  Eurozone Purchasing Managers survey showed a sharp drop.  European shares off a little less than 1%.  October CPI flat, Core rate up 0.2%. VIX Futures trade ~9,800 contracts in the early session. Volatility as an asset class: Keurig Green Mountain (GMCR) is down $3.45 (2.2%) to [...]

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CBOE Mid-Day Update 11.19.14

Volatility as an asset class Tesla Motors (TSLA) down $10.51 to $247.10 after Morgan Stanley took down estimates for the company, though they noted they remain buyers. November call option implied volatility is at 45, December is at 35, January is at 37; compared to its 26-week average of 46. Staples (SPLS) is recently up [...]

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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 [...]

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CBOE Mid-Day Update 11.18.14

Volatility as an asset class Home Depot (HD) is recently down $1.73 to $96.30 after reporting in line Q3 EPS of $1.15 and mixed 2015 guidance. November call option implied volatility is at 19, December is at 18, January is at 16; compared to its 26-week average of 18. Medtronic (MDT) is recently up $2.66 [...]

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Blogging Options: CBOE Morning Update 11.18.14

It’s cold in the midwest.  PPI for October rose an unexpected 0.2% (-0.1% expected, and -0.1% in Sept.).  X-Food % Energy PPI rose 0.1%.   HD beat with earnings but vague comments about cost of security problems shows the shares off $0.90.  Fans of Shark Tank woke up to find GrooveBook (Shark Tank company) bought [...]

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CBOE Mid-Day Update 11.17.14

Volatility as an asset class iShares MSCI Japan Index Fund (EWJ) is recently down 20c to $11.58 as Japan slipped into recession. Overall option implied volatility of 20 compares to its 26-week average of 16. American Express (AXP) is recently down 72c to $89.96 after reporting October net write-off rate 1.3% vs. 1.2% last month. [...]

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Blogging Options: CBOE Morning Update 11.17.14

Asian markets off sharply as Japan officially enters recession.  NIKKEI off 3% after trading off 6%. Oil and grains off fractionally. Nov. VIX settles this Wednesday. It’s cold in Chicago.  Volatility as an asset class: Baker Hughes (BHI) is up $9.51 to $69.43 in the premarket on Halliburton (HAL) acquiring all the outstanding shares of [...]

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CBOE Mid-Day Update 11.14.14

Volatility as an asset class Geron (GERN) is recently up 59c to $2.90 after announcing a global strategic collaboration with Janssen Biotech. November call option implied volatility is at 116, December is at 99, January is at 88, March is at 97; compared to its 26-week average of 106. Harley-Davidson (HOG) is recently up 88c [...]

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CBOE Mid-Day Update 11.13.14

Volatility as an asset class Kohl’s (KSS) is recently down $2.11 to $55.80 after reporting less than expected Q3 results and issued a less than expected Q4 outlook. November call option implied volatility is at 25, December is at 21, January is at 20; compared to its 26-week average of 25. Tyco (TYC) is recently [...]

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Blogging Options: CBOE Morning Update 11.13.14

Volatility as an asset class Procter and Gamble (PG) is down $0.58 to $88.90 on Berkshire Hathaway Inc. (BRK.B) acquiring the Duracell battery business from Procter & Gamble in deal valued at approximately $6.4B. Overall option implied volatility of 13 is near its 26-week average of 14. Cisco (CSCO) is  higher by $0.38 to $25.50 [...]

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CBOE Mid-Day Update 11.11.14

Volatility as an asset class SPDR Gold Trust (GLD) is recently up $1.10 to $111.53 as gold slips lower. November weekly call option implied volatility is at 23, November is at 19, December is at 20; compared to its 26-week average of 15. Groupon (GRPN) is recently up 22c to $7.65 after reporting 53M total [...]

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CBOE Mid-Day Update 11.10.14

Volatility as an asset class Teucrium Corn Fund (CORN) is recently up 23c to $25.96 amid USDA lowering corn production forecast by 68M bushels.  Overall option implied volatility of 24 is near its 26-week average of 23. Teucrium Soybean Fund (SOYB) overall option implied volatility of 25 compares to its 26-week average of 23. Teucrium [...]

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Blogging Options: CBOE Morning Update 11.10.14

Quiet overnight session after three weeks of gains.  European shares higher, Asian stocks mixed. Several Retailers will post results in the next few days. Chinese economic numbers released this morning exactly on consensus estimates, whatever that means.  Traders on the floor this morning talking about Chicago Bears humiliation at the hand of Green Bay Packers [...]

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CBOE Mid-Day Update 11.7.14

Volatility as an asset class Sears (SHLD) is recently up $9.29 to $41.94 after saying company is actively exploring a REIT transaction involving 200-300 owned properties through a rights offering. November call option implied volatility is at 82, December is at 74; compared to its 26-week average of 56. Gap (GPS) is recently up $1.19 [...]

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CBOE Mid-Day Update 11.6.14

Volatility as an asset class Whole Foods (WFM) is recently up $4.25 to $44.21 after the super market chain’s Q4 profit surpassed analysts’ consensus estimates and it raised its quarterly dividend. November call option implied volatility is at 24, December is at 23, January is at 21; compared to its 26-week average of 33. Zillow [...]

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Blogging Options: CBOE Morning Update 11.6.14

ECB leaves rates unchanged, no surprise.  Weekly Jobless Claims dropped, but Challenger reported a jump in layoffs. European shares modestly higher, Asian shares hit by profit takers.  Oil and metals lower again, 10-year 2.36%.  Volatility as an asset class Tesla (TSLA) is up $4 to $243.97 in the premarket after beating earnings estimates and issuing [...]

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CBOE Mid-Day Update 11.5.14

Volatility as an asset class Nu Skin Enterprises (NUS) is recently down $7.03 to $42.53 after the nutrition company announced a less than expected Q4 outlook. November weekly call option implied volatility is at 100, November is at 55, December is at 63, January is at 50, March is at 54; compared to its 26-week [...]

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Blogging Options: CBOE Morning Update 11.05.14

US stock futures higher on Republican Senate victory last night. Some voters in Chicago finished voting at 3:00am due to new voting rules implemented at the last minute. Those in line for 5 to 8 hours get our admiration.  Illinois elected a Republican Governor in a big upset.  Talking heads on the business channels will [...]

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CBOE Mid-Day Update 11.4.14

Volatility as an asset class Herbalife (HLF) is recently down $11 to $44.89 after the nutrition company reported weaker than expected Q3 results and estimated that its sales would decline in Q4. November weekly call option implied volatility is at 114, November is at 108, December is at 92, January is at 94; compared to [...]

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CBOE Mid-Day Update 11.3.14

Volatility as an asset class American Realty Capital Properties (ARCP) is recently down 58c to $8.28 after RCS Capital (RCAP) terminated its agreement to acquire Cole Capital Partners and Cole Capital Advisors from the company. November call option implied volatility is at 79, December is at 76, January is at 72; compared to its 26-week [...]

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Blogging Options: CBOE Morning Update 11.3.14

US election on front burner today through Wednesday.  Futures mostly flat, crude ~$81 (gas under $3 per gallon at some stations in Chicago), 10-year 2.34%.  Media stocks report quarterly earnings mid-week.  Sapient gets bid this morning.  Volatility as an asset class: Alibaba (BABA) is up $0.65 to $99.25 in the premarket, the release of Q3 [...]

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CBOE Mid-Day Update 10.31.14

Volatility as an asset class Exxon Mobil (XOM) is recently up $1.44 to $95.87 on Q3 earnings increasing 2.5% on higher refining margins. November weekly call option implied volatility is at 15, December is at 14, January is at 13; compared to its 26-week average of 18. Chevron (CVX) is recently up $1.41 to $118.65 [...]

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Blogging Options: CBOE Morning Update 10.31.14

BOJ cranked up QE again, pushing overseas shares higher.  Personal Income up 0.2% in September (+0.3$ August), Spending off 0.2%.  Omega bids for AVIV shares.  XOM earned $1.89 vs. $1.71, Chevron (CVX) reported a gain of $2.95 vs. $2.55.  CVX revenues dropped $3.5B for the quarter, both companies helped with downstream (refining) as oil prices [...]

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CBOE Mid-Day Update 10.30.14

Volatility as an asset class MasterCard (MA) is recently up $5.62 to $81.60 on better than expected Q3 results and outlook. November call option implied volatility is at 23, December is at 18, January is at 17; compared to its 26-week average of 24. Weight Watchers (WTW) is recently down $4.51 to $24.91 on commentary [...]

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Blogging Options: CBOE Morning Update 10.30.14

Q3 GDP came in at a 3.5% gain (+3.0% to +3.1% expected), but Personal Consumption dropped and the increase in government spending accounted for .85% to .9% of the rise.  US futures mixed to lower.  10-year 2.289%, oil lower.  Volatility as an asset class Cirrus Logic (CRUS) is up $0.31 to $22.20 in the premarket [...]

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CBOE Mid-Day Update 10.29.14

Volatility as an asset class Electronic Arts (EA) is recently up $1.50 to $38.93 after the company’s Q2 earnings per share and revenue topped analysts’ estimates. November and December call option implied volatility is at 33 and January is at 31; compared to its 26-week average of29. Gilead (GILD) is recently down $3.42 to $110.83 [...]

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Blogging Options: CBOE Morning Update 10.29.14

Stocks mixed to modestly higher as FOMC minutes to be released early this morning.  Volatility as an asset class Facebook (FB) is down $4.37 to $76.35 following the company’s warning of a dramatic increase in spending in 2015 and projected slowdown in revenue growth this quarter. Facebook October weekly call option implied volatility is at [...]

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CBOE Mid-Day Update 10.28.14

Volatility as an asset class The Medicines Company (MDCO) is recently up $2.94 to $25.13 after announcing the results of the pivotal Phase III clinical trial of the investigational hemostatic agent RAPLIXA, formerly known as Fibrocaps. November call option implied volatility is at 53, December is at 46, January is at 41; compared to its [...]

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Blogging Options: CBOE Morning Update 10.27.14

Pretty good volume day Friday for options, with 16.85mm contracts traded.  ~913K SPX and over 1 million VIX contracts change hands.  Soft opening on US markets this morning.  Volatility as an asset class Brazil’s president Rousseff won a second term yesterday, defeating the conservative Aécio Neves in a race that exposed Brazil’s economic and social [...]

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Blogging Options: CBOE Morning Outlook 10.24.14

Ebola in the US takes over the headlines and gets the attention of investors and traders this morning.  Housing starts to be reported 30 minutes after the opening.  Bond yield drops slightly.  Volatility as an asset class: Microsoft (MSFT) is up $1.23 to $46.25 in the premarket after Q1 top and bottom line beats estimates. [...]

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Blogging Options: CBOE Morning Update 10.23.14

Good earnings reports this morning pushing shares higher, SPY up $1.75 in early trade. . CAT beat, large repurchase in the quarter.  LUV, GM, UAL and Dunkin also beat.  LLY showed revenue beat but earnings missed.  Volatility as an asset class: Nokia (NOK) is up 68c to $8.61 in the premarket after the telecom-equipment supplier [...]

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CBOE Mid-Day Update 10.21.14

Volatility as an asset class Coca-Cola (KO) is recently down $2.53 to $40.76 following earnings that were in line with expectations, but guidance that disappointed. October weekly call option implied volatility is at 27, November is at 16, January is at 14; compared to its 26-week average of 17. Harley-Davidson (HOG) is recently up $3.59 [...]

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Blogging Options: CBOE Morning Update 10.21.14

Several earnings reports at the opening.  MCD is off $0.75 after missing, VZ lower by $0.50, KO down $2.00.  Oil & Gold higher.  US markets open slightly higher.  Ed Tilly welcomed students from Drake School in Chicago to the SPX yesterday after the close.  CBOE is involved in a tutoring program with volunteers from the [...]

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CBOE Mid-Day Update 10.20.14

Volatility as an asset class IBM (IBM) is recently down $12.25 to $169.80 after reporting a 4% decrease in quarterly revenue and no longer expects ‘at least’ $20 operating EPS in 2015. October weekly call option implied volatility is at 31, November is at 20, January is at 19; compared to its 26-week average of [...]

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Blogging Options: CBOE Morning Update 10.20.14

Asian shares looked to lead US markets higher this morning, until disappointing guidance from Big Blue this morning (and earnings of $3.68 versus consensus estimates of ~$4.25). European shares retreated ~1% (unsure of RTGS system being down is connected to the selloff), US futures gave up early gains.  HAL beat and raised it’s dividend.  20K [...]

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CBOE Mid-Day Update 10.17.14

Volatility as an asset class Honeywell (HON) is recently up $3.39 to $89.77 on solid Q3 results and raising FY14 EPS guidance. November call option implied volatility is at 20, December and January is at 19, March is at 20; compared to its 26-week average of 18. Morgan Stanley (MS) is recently up 83c to [...]

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Blogging Options: CBOE Morning Update 10.17.14

US Futures look to open higher, extending yesterday’s afternoon rally.  Asian shares lower overnight, with NIKKEI off 1.4%.  European shares up ~1% to 2%.  Yields rising on US Treasuries as investors calm down. Oil futures higher.  URBN off $4.50 to ~$30 on margin drop,  Big volume at CBOE yesterday. Volatility as an asset class: Google [...]

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CBOE Mid-Day Update 10.16.14

Volatility as an asset class Chesapeake Energy (CHK) is recently up $2.80 to $20.61 after the energy company announced that it sold Marcellus and Utica shale assets to Southwestern Energy (SWN) for $5.375B. October weekly call option implied volatility is at 65, November is at 51, December is at 48; compared to its 26-week average [...]

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CBOE Mid-Day Update 10.15.14

Volatility as an asset class Airline stocks, on a roller coaster ride today, following reports the 2nd nurse infected with Ebola flew a few days ago (Oct 13). The CDC is reaching out to passengers who flew on Frontier Airlines flight 1143 Cleveland to Dallas/Fort Worth Oct. 13. United Continental (UAL) is recently down $2.62 [...]

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CBOE Mid-Day Update 10.14.14

Volatility as an asset class Wells Fargo (WFC) is recently down 55c to $49.65 after reporting in-line Q3 earnings. October call option implied volatility is at 27, November is at 19, January is at 20; compared to its 26-week average of 16. Domino’s Pizza (DPZ) is recently up $6.90 to $82.63 after the company reported [...]

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Blogging Options: CBOE Morning Update 10.14.14

Busy day at CBOE yesterday, as almost 7.5 mm contracts trade.  Volume leaders were SPX and VIX, each exceeding 1 mm contracts with ease.  VIX futures with ~523 k volume came within a whisker of setting a record (~530K).  VIX futures off to a strong start in the early session with volume of 50 K.  [...]

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CBOE Mid-Day Update 10.13.14

Volatility as an asset class Tech stocks share prices have had wide price moment resulting in higher option implied volatility. Facebook (FB) is recently up $1.17 to $60.20. October call option implied volatility is at 40, November is at 47, December is at 40; compared to its 26-week average of 38. Amazon.com (AMZN) is recently [...]

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CBOE Mid-Day Update 10.10.14

Volatility as an asset class CBOE Volatility Index NASDAQ 100 (VXN) recently up 6.2% to 21; compared to its 10-day moving average of 18.68, 50-day moving average of 15.27.  NASDAQ 100 down 0.9%. CBOE DJIA Volatility Index (VXD) is recently down 0.4% to 15.64; compared to 10-day moving average of 14.31, 50-day moving average of [...]

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CBOE Mid-Day Update 10.9.14

Volatility as an asset class Volatility has increased as stocks have hit session lows Russell 2000 (IWM) October call implied volatility is at 23. www.cboe.com/IWM S&P 100 (OEX) October call implied volatility is at 15.  www.cboe.com/OEX S&P 500 Index Options (SPX) October call implied volatility is at 12. www.cboe.com/SPX Russell 2000 Index Options (RUT) October [...]

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CBOE Mid-Day Update 10.8.14

Volatility as an asset class Sears Holdings (SHLD) is recently down $4.40 to $25.90 after Bloomberg says vendor to halt shipments. October weekly call option implied volatility is at 170, October is at 107, November is at 94,  December is at 84, March is at 76; compared to its 26-week average of 54. J.C. Penney [...]

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Blogging Options: CBOE Morning Update 10.8.14

Overseas markets soft this morning, while US futures point to a firm opening.  10-year ~2.355%.  ~19,500 VIX Futures trade in early session.  Alcoa leads off the Q3 earnings season after the close. FOMC Minutes released mid-day.  Tekmira, a pharma stock involved in Ebola trials with active stock activity.  Volatility as an asset class: Yum! Brands [...]

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CBOE Mid-Day Update 10.7.14

Volatility as an asset class General Motors (GM) is recently down $1.59 to $32.16 after recalling 46,873 vehicles from 2008-2013. October weekly call option implied volatility is at 22, October is at 26, November is at 26, December is at 25; compared to its 26-week average of 27. Amazon.com (AMZN) is recently $1.59 to $320.61 [...]

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CBOE Mid-Day Update 10.6.14

Volatility as an asset class Intuitive Surgical (ISRG) is recently up $16.45 to $491.66 after Goldman Sachs upgraded the medical device company to Buy. October weekly call option implied volatility is at 39, October is at 33, November is at 36, January is at 31; compared to its 26-week average of 33. Chimerix (CMRX), up [...]

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Blogging Options: CBOE Morning Update 10.6.14

US stocks add on to gains in early trade.  Overseas markets higher, catching up to US rally Friday.  10-year 2.43%.  DIS spending over $1B to help European subsidiary, is up $0.40 in early trade.  Volatility as an asset class HP (HPQ) is up $2.11 to $37.31 in the premarket after announcing plans to separate into [...]

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Blogging Options: CBOE Morning Update 10.3.14

September Non-Farm Payrolls rose 248K (wide range of estimates, this at the high end).  Unemployment Rate at 5.9% (6.1% August).  August Payrolls revised from 148K to 180K, July revised slightly higher. 10-year up 2 basis points to 2.46%, Gold drops $12, Euro with 125 handle. DJIA Futures look to up 100 point rise on open, [...]

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Blogging Options: CBOE Morning Update 10.2.14

Mr. Draghi keeps ECB rates unchanged.  European and Asian shares lower, oil off 1.5%.  US stock futures mixed to lower after getting hit hard yesterday.  22K VIX Futures change hands in early session after 250K trade yesterday.  US September employment report tomorrow. Volatility as an asset class: CBOE Crude Oil Volatility Index (OVX) at 22.38, [...]

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CBOE Mid-Day Update 10.1.14

Volatility as an asset class General Motors (GM) is recently up 84c to $32.78 after reaffirming near-term financial targets and reporting September U.S. sales up 19.4% to 223,437 vehicles. General Motors weekly volatility elevated into CEO unveiling financial strategy. October weekly call option implied volatility is at 38, October is at 26, November is at [...]

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Blogging Options: CBOE Mid-day Update 9.30.14

Volatility as an asset class Walgreen (WAG) is recently down 51c to $59.09 on Q4 revenue rising 6.2%. October weekly call option implied volatility of 30, October is at 23, November is at 22, January is at 21; compared to its 26-week average of 24. Cintas (CTAS) is recently up $4.98 to %70.95 on Q4 [...]

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Blogging Options: CBOE Morning Update 9.30.14

Window Dressing Day.  EBay and PayPal hog the spotlight this morning and shift focus to tech stocks.  Hong Kong shares off another 1.25% on continued unrest.  BABA options got off to a good start with CBOE trading over 33k of 122k contracts.  Average option volume day yesterday, but VIX futures traded 228k.   Case-Shiller Home [...]

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CBOE Mid-Day Update 9.29.14

Volatility as an asset class Alibaba (BABA) is recently down $1.44 to $89.03. October 90, 95 and 100 calls are active at the CBOE on the first day of options trading. October call option implied volatility is at 38, November is at 39, December is at 38, January is at 37. GoPro (GPRO) is recently [...]

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Blogging Options: CBOE Morning Update 9.26.14

2Q GDP came in as expected at 4.6%.  U of M Sentiment later this morning.  Bill Gross leaving PIMCO has talking heads excited this morning.  Good option volume yesterday as CBOE traded ~6mm of 20mm contracts traded.  BABA expected to begin option trading Monday.  Commodities unchanged in early pre-market trade, Asian shares mixed to lower, [...]

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CBOE Mid-Day Update 9.25.14

Volatility as an asset class CBOE Volatility Index NASDAQ 100 (VXN) recently up 16.8% to 17.81; compared to its 10-day moving average of 15.19, 50-day moving average of 14.28.  NASDAQ 100 down 1.8%. CBOE DJIA Volatility Index (VXD) is recently up 17.4% to 14.10; compared to 10-day moving average of 12.35, 50-day moving average of [...]

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CBOE Mid-Date 9.24.14

Volatility as an asset class Accenture (ACN) is recently down 66c to $78.93 on Q4 profit rising 4.5%. September weekly call option implied volatility is at 22, October weekly is at 16, November is at 13, January is at 15; compared to its 26-week average of 20. KB Homes (KBH) is recently down $1.10 to [...]

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Blogging Options: CBOE Morning Update 9.24.14

US pre-market flat this morning.  Asian stocks mixed to lower, European shares higher.  August Housing Sales out shortly.  BABA gains ~$1 in pre-market.  Several FED Heads giving talks today, first two said somewhat contrary statements but by mid-day we’ll get that sorted out.  Volume on CBOE good yesterday.  Volatility as an asset class: Bed Bath [...]

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CBOE Mid-Day Volatility 9.23.14

Volatility as an asset class Carmax (KMX) is recently down $4.97 to $47.84 after posting sluggish Q2 used unit sales in comparable stores. October call option implied volatility is at 24, January is at 23, April is at 24; compared to its 26-week average of 27. Salix (SLXP) is recently up $8.62 to $168.45 after [...]

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CBOE Mid-Day Update 9.22.14

Volatility as an asset class S&P 100 Options (OEX) recently is recently down 6.17 to 890.94 on weak U.S. existing home sales in August and China finance minister indicating the country will not increase stimulus measures. CBOE Volatility Index (VIX) up 14.8% to 13.90. Oct 20 and November 15 calls active on 129K cboe.com/VIX iPath S&P [...]