Category Archives: Blogging Options

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CBOE Mid-Day Update 1.30.15

Volatility as an asset class Biogen (BIIB) is recently up $34.93 to $388.54 on Q4 profit nearly doubling. February weekly call option implied volatility is at 37, February is at 34, March is at 32, April is at 35; compared to its 26-week average of 32. MasterCard (MA) is recently up 54c to $81.86 on […]

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Blogging Options: CBOE Morning Update 1.30.15

Ouch!  Q4 GDP came in with a gain of 2.6, down from 5% gain in Q3.  Consensus was a gain of ~3.5% but remember GDP will have two revisions.   The Consumer Spending component shower a nice spurt, but overall a terrible number.  Stocks off sharply pre-open.  AAPL, AMZN & GOOG should help NASDAQ markeT, Visa […]

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CBOE Mid-Day Update 1.29.14

Volatility as an asset class Yahoo (YHOO) is recently down $3.25 to $43.20 following Alibaba’s (BABA) weak earnings report. January weekly call option implied volatility is at 59, February weekly is at 45, February is at 38, March is at 38; compared to its 26-week average of 38. McDonald’s (MCD) is recently up $3.74 to […]

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Blogging Options: CBOE Morning Update 1.29.15

US Stock Futures rallying after a few tough previous sessions.  Weekly Claims dropped sharply to 265K.  Overseas equities lower with FTSE sliding 0.8%.   MCD announces new CEO.  QCOM beats but guides lower.  Jeff Gundlach and Bill Gross with bearish comments.  17.6 mm option contracts yesterday. Volatility as an asset class: Alibaba (BABA) is down $5.45 […]

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CBOE Mid-Day Update 1.28.15

Stocks soften on Hawkish FED & Yellen remarks. Crude trades at 6-year low, with WTI under $44.50.  10-year drops 9 basis points to 1.73.  Options volume pretty average. Boeing (BA) is up $7.95 to $140.55 on better than expected Q4 results and light guidance. February, March and April call option implied volatility is at 17; […]

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Blogging Options: CBOE Morning Update 1.28.15

US stock futures push higher.  Boeing (BA, $136, up $3.50) with good earnings this morning, beating on the top & bottom line.  Guidance slightly lower than consensus. European shares moderately lower.  Chairman Yellen speaks later today.  Volatility as an asset class Apple (AAPL) is up $8.56 to $117.66 in the premarket after reporting the largest […]

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CBOE Mid-Day Update 1.27.15

Volatility as an asset class Polaris Industries (PII) is recently up $4.81 to $146.18 on better than expected Q4 EPS $1.98 of and 2015 sales guidance of up 9%-12%. February call option implied volatility is at 23, March is at 22, June is at 23; compared to its 26-week average of 28. Freeport McMoRan (FCX) […]

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CBOE Mid-Day Update 1.26.15

Volatility as an asset class Shares of solar energy companies are rising after President Obama yesterday promised to provide financial support for India’s major solar energy initiative. First Solar (FSLR) is recently up $1.38 to $43.88. Overall option implied volatility of 52 compares to its 26-week average 48. SunEdison (SUNE) is recently up 75c to […]

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Blogging Options: CBOE Morning Update 1.26.15

Greece election and renewed unrest in Ukraine on the frontburner this morning.   Euro hit new lows overnight but has rallied.  VIX futures average volume in overnight session.  Earnings watched closely this week. Overseas markets mixed, Gold lower.  A monster snowstorm is headed to the US East coast tonight, some traders wondering if early hours Tuesday.  […]

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CBOE Mid-Day Update 1.23.15

Volatility as an asset class Honeywell (HON) is recently up $3.58 to $102.96 on the diversified company sees short cycle improvement and long cycle momentum. February call option implied volatility is at 16, March is at 14, June is at 15; compared to its 26-week average of 19. General Electric (GE) is recently up 47c […]

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Blogging Options: CBOE Morning Update 1.23.15

US Stocks and overseas markets flat to higher as investors weigh effect of European QE.  Euro approaches 112.  Death of King Abdullah puts little volatility in Oil markets as country will keep same policies.  GE flat after earnings.  F to take $800m currency charge.  New Home Sales and Leading Indicators later this morning.  Volatility as […]

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CBOE Mid-Day Update 1.22.15

Volatility as an asset class United Continental (UAL) is recently up $2.37 to $71.54 on the airliner sees generating ‘far better’ results in 2015. February call option implied volatility is at 45, March is at 43; compared to its 26-week average of 44. Southwest (LUV) is recently up $2.55 to $44.36 on seeing Q1 passenger […]

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Blogging Options: CBOE Morning Update 1.22.15

US stocks with premarket euphoria but “sell the news” give back gains.  ECB announced $60B (Euro) Bond purchase per month for next ~20 months.  Euro down 1.25% vs the USD, now at 1.147. All Euro currencies lower except Swiss which is unchanged.   Weekly Jobless Claims above 300K again. VZ off 2% on earnings.  VIX […]

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CBOE Mid-Day Update 1.21.15

Volatility as an asset class UnitedHealth (UNH) is recently up $2.55 to $108.19 as Q4 results top expectations on revenue growth.  January weekly call option implied volatility is at 29, February is at 20, June is at 20; compared to its 26-week average of 22. Apple (AAPL) is recently up $1.86 to $110.58 into its […]

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Blogging Options: CBOE Morning Update 1.21.15

State of The Union with no surprises last night.  US Housing in the news this morning with Dec. Starts rising 4% but Permits dropping 1.9%. Overseas markets mixed with NIKKEI off 0.5%, FTSE up 0.6% and Shanghai higher by 4%.  10-Year 1.78%.  Average option volume yesterday with~15 m contracts traded.  VIX & SPX showed 640 […]

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CBOE Mid-Day Update 1.16.15

Volatility as an asset class PNC Financial (PNC) is recently up $1.49 to $83.90 after reporting Q4 EPS $1.84, compared to consensus $1.74. February call option implied volatility is at 22, May is at 19; compared to its 26-week average of 18. Comerica (CMA) is recently up 51c to $41.74 after reporting Q4 EPS 80c, […]

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Blogging Options: CBOE Morning Update 1.16.15

December CPI off 0.4% (consensus -0.3%.  Energy contributed -4% to this drop).  X-Food & Energy rose 1.6% (+1.75 expected).   Industrial production fell 0.1% in December.  Markets still weighing Swiss bank move with US futures lower.  A trader tells us that Implied Volatility on the Swiss Franc going into yesterday’s session was under 2%!  The perils […]

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CBOE Mid-Day Update 1.15.15

Volatility as an asset class Citi (C) is recently down $1.24 to $47.83 on the money center sees FY15 revenue growth for Citicorp in low to mid-single digit percentage.  January weekly call option implied volatility is at 31, February is at 27, March is at 26; compared to its 26-week average of 22. Lennar (LEN) […]

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CBOE Mid-Day Update 1.14.15

Volatility as an asset class JPMorgan (JPM) is down $2.54 to $56.29 after reporting Q4 EPS $1.19, consensus $1.31. January call option implied volatility is at 29, February is at 24, April is at 23, June is at 22; compared to its 26-week average of 19. Wells Fargo (WFC) is off 79c to $51.06 after […]

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CBOE Mid-Day Update 1.13.15

Volatility as an asset class Costco (COST) is recently up 62c to $143.17 after Goldman Sachs downgraded citing the recent valuation expansion and its belief the retailer’s earnings momentum is close to peaking.  January call option implied volatility is at 17, February is at 16, July is at 15; compared to its 26-week average of […]

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Blogging Options: CBOE Morning Update 1.13.15

Stocks look stronger across the board, Crude down, US Dollar higher.  Growing optimism on Q1 Earnings after Alcoa beat last night.  VIX looks down one point.  Volatility as an asset class Alcoa (AA) is down $0.10 to $16.30 in the premarket after beating Wall Street estimates on both the top and bottom line.  January call […]

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CBOE Mid-Day Update 1.12.15

Volatility as an asset class Auto manufacturer’s option implied volatility is mixed as the North American International Auto Show begins in Detroit. General Motors Co. (GM) over all option implied volatility of 27 compares to its 26-week average of 26. Toyota Motor Corp. (TM) over all option implied volatility of 20 compares to its 26-week […]

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CBOE Mid-Day Update 1.9.14

Volatility as an asset class President Obama announced that he would ask Congress to provide free community college tuition for all Americans who are “willing to work for it”. Publicly traded education companies in the space have flat option implied volatility. American Public Education (APEI) overall option implied volatility of 32 compares to its 26-week […]

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Blogging Options: CBOE Mid-Day Update 1.8.15

Stocks headed higher at the opening and haven’t looked back.  Option volume busy mid-day, as CBOE & C2 trade over 3.1mm of 11.1 million contracts.  SPX trades over 560K and VIX options with 270K.  VIX futures show 100K+ trading.  Volatility as an asset class: Proshares UltraShort  20 Year Treasury ETF (TBT) is up $1.12 to […]

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CBOE Mid-Day Update 1.7.15

Volatility as an asset class The ‘Majors’ option implied volatilities has increased as WTI Crude Oil futures trends below $48 Exxon Mobil (XOM) overall option implied volatility of 25 compares to its 26-week average of 18. BP (BP) overall option implied volatility of 31 compares to its 26-week average of 18. ConocoPhillips (COP) overall option implied […]

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Blogging Options: CBOE Morning Update 1.7.15

ADP Employment beat this morning (added 241K jobs, 230K expected) and stocks reacted well.  Five-Day losing streak looks like it should end today.  Overseas markets moving higher.   Oil erased early losses and have moved to the upside,  WTI up 1%.   Gold off, FED minutes later today.  Option volume yesterday was very good, with CBOE & […]

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Blogging Options: CBOE Morning Update 1.6.15

US stock futures up fractionally this morning.  10-year ticked below 2%, and WTI was off 2.01% to $49.05.  17.6 million options trade yesterday, with SPX at 1.17mm and VIX near 500K.  SPY showed 3.275mm contracts change hands. VIX closed 19.92 yesterday, could be interesting watch this week.  Good article from Russell Rhoads on VIX activity […]

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CBOE Mid-Day Update 1.5.14

Volatility as an asset class iPath S&P GSCI Crude Oil Total Return (OIL) is recently down 60c to $11.61 as WTI crude oil trades below $51.  January call option implied volatility is at 67, February is at 62; compared to its 26-week average of 27. Energy Select Sector SPDR (XLE) is recently down $3.39 to […]

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Blogging Options: CBOE Mid-Day Update 1.2.15

ISM for December (55.5% versus 58.7% in Nov, 4th straight drop and lowest since June ’13), disappointed traders and investors this morning, turning a firm opening into a light-volume sell off.  Construction Spending fell as well.  10-Year yield dropped to 2.12% after printing 2.102%. Oil and Grains off over 1%. GE, NKE & DIS lower, […]

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CBOE Mid-Day Update 1.2.15

Volatility as an asset class S&P 500 Top Best Performers of 2014 have mixed option implied volatility Mallinckrodt (MNK) overall option implied volatility of 38 compares to its 26-week average of 35. Delta Air Lines (DAL) overall option implied volatility of 37 compares to its 26-week average of 36. Keurig Green Mountain (GMCR) overall option […]

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Blogging Options: CBOE Morning Update 12.31.14

US Stock futures up fractionally, Weekly Claims rise a little more than expected, Crude drops again, trading below $53 per bbl.  Kink Abdullah of Saudi Arabia reportedly hospitalized for tests mat be adding to price instability.  10-year 2.18%. Regular trading hours today.  Volatility as an asset class: Chevron (CVX) is down 60c to $112.51 in […]

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Blogging Options: CBOE Mid-day Update 12.29.14

Volatility as an asset class VIX methodology for Goldman Sachs (VXGS) up 3.3% to 24.66, compared to its 50-day moving average of 22.07. cboe.com/VXGS VIX methodology for Apple (VXAPL) up 3.3% to 29.83 compared to its 50-day moving average of 25.68. cboe.com/VXAPL VIX methodology for Amazon (VXAZN) up 3.7% to at 37.12, compared to its 50-day moving average of 32.83. cboe.com/VXAZN […]

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Blogging Options: CBOE Morning Update 12.29.14

Markets digesting the gains of the last few weeks.  Elections in Greece trying to pull markets lower this morning, and oil disruptions in Libya have Brent Crude trading higher.  Full trading schedule through Wednesday, trains empty on way in this morning.  Volatility as an asset class Manitowoc (MTW) is up $2.09 to $23.01 in the […]

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CBOE Mid-Day Update 12.26.14

Volatility as an asset class Oil indexes and ETF option implied volatility is elevated as WTI Crude oil trades below $57 ProShares Ultra DJ-UBS Crude Oil (UCO) overall option implied volatility of 92 compares to its 26-week average of 45. Energy Select Sector SPDR (XLE) overall option implied volatility of 26 compares to its 26-week […]

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Blogging Optiions: CBOE Morning Update 12.26.14

Regular trading hours today but trains empty into work this morning.  Boxing Day holiday today, several major exchanges around world are closed  (England, Hong Kong, Australia, etc., and as St Stephens Day in South Africa). Futures higher, trying to add on to Wednesdays (light volume) higher close.  Brent Crude above $60 bbl, Nat Gas ticked […]

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CBOE Mid-Day Update 12.24.14

Volatility as an asset class Global option implied volatility stays elevated on wide price movement iShares FTSE Xinhua China 25 Index (FXI) overall option implied volatility of 24 compares to its 26-week average of 20. MSCI Brazil Index (EWZ) overall option implied volatility of 31 compares to its 26-week average of 29. iShares MSCI Germany […]

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CBOE Mid-Day Update 12.23.14

Volatility as an asset class VIX methodology for Goldman Sachs (VXGS) down 4.1% to 24.38, compared to its 50-day moving average of 22.59. cboe.com/VXGS VIX methodology for Apple (VXAPL) down 0.7% to 28.09, compared to its 50-day moving average of 26.04. cboe.com/VXAPL VIX methodology for Amazon (VXAZN) down 3% to at 33.97, compared to its […]

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Blogging Options: CBOE Morning Update 12.23.14

US Stocks firmed in early trade after the Q3 GDP Final was revised higher to +5.0%.  Tempering the euphoria was November Durable Goods at -0.7% missing by mile (up 2.4% expected), X-Transports fell 0.4%, X-Defense dropped 0.1%.  Oil up 1.5%, European shares firm.  10-year 2.18%.  Volatility as an asset class: Chesapeake Energy (CHK) is up […]

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CBOE Mid-Day Update 12.22.14

Volatility as an asset class Gilead (GILD) option implied volatility has increased after Express Scripts (ESRX) will offer AbbVie’s (ABBV) just approved hepatitis C regimen Viekira Pak. Gilead is recently down $15.95 to $92.84.  December weekly put option implied volatility is at 55, January is at 41; compared to its 26-week average of 34. Express […]

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Blogging Options: CBOE Morning Update 12.22.14

Overseas shares higher, US Dollar up against Euro.  GILD off sharply ($12) as AbbVie gets exclusive on a drug.  Lighter volume on Christmas holiday week begins.  Volatility as an asset class The ‘Majors’ option implied volatilities has spiked as WTI Crude Oil futures trades $57 Exxon Mobil (XOM) overall option implied volatility of 18 compares […]

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CBOE Mid-Day Update 12.19.14

Volatility as an asset class CarMax (KMX) is recently up $5.76 to $66.29 on better than expected Q3 results and customer traffic growth. January call option implied volatility is at 28, April is at 31; compared to its 26-week average of 32. Finish Line (FINL) is recently down $5.63 to $23.28 after lowering its earnings […]

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CBOE Mid-Day Update 12.18.14

Volatility as an asset class Oracle (ORCL) is recently up $3.40 to $44.56 after Q2 results beat estimates as Q2 total software plus cloud revenue grew 5% to $7.3B. December call option implied volatility is at 26, January is at 21, February is at 19; compared to its 26-week average of 21. Cloud software-as-a-service, platform-as-a-service […]

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CBOE Mid-Day Update 12.17.14

Volatility as an asset class Proshares UltraShort Barc 20 Year Treasury ETF (TBT) is recently up 66c to $46.22 into the FOMC policy statement.  December call option implied volatility is at 37, January is at 27, March is at 26; compared to its 26-week average of 24. IShares Barclay 20+ YR Treasury ETF (TLT) is […]

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CBOE Mid-Day Update 12.16.14

Volatility as an asset class iPath S&P GSCI Crude Oil Total Return (OIL) is recently up 22c to $13.26 as WTI crude oil trades above $56.  Overall option implied volatility of 60 compares to its 26-week average of 25. Energy Select Sector SPDR (XLE) is recently up $2.09 to $75.49. December call option implied volatility […]

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Blogging Options: CBOE Morning Update 12.16.14

Busy day yesterday as 19.8 million option contracts trade, with CBOE & C2 accounting for 7.2m.  SPX with 1.28m & VIX with 849K.  VIX Futures showed 417K contracts changing hands.  SPY active with 3.7m contracts trading.  VIX traded up to ~24 intra-day yesterday.  After the close Russia raised rates from 10.5% to 17%, 6th raise […]

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Blogging Options: CBOE Morning Update 12.12.14

November PPI fell 0.2% (gasoline accounted for over half of the drop – flat expected) Core Rate was flat.  Oil being hammered again ON IEA lowering oil price forecast again.  Overseas markets down sharply, US following.  Jan WTI trading $58.50.  10-year near 2.12%. VIX Futures active in pre-market with 59K contracts traded.  Volatility as an […]

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Blogging Options: CBOE Morning Update 12.11.14

Retail Sales rose this morning, aided by Auto Sales (+1.7%).  Overseas markets not doing as well, talk of more problems in Greece hurting Asian stocks.  OIL off an additional 1%.  Volatility as an asset class The ‘Majors’ option implied volatility is elevated as WTI Crude Oil futures trade below $62 Exxon Mobil (XOM)  option implied […]

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CBOE Mid-Day Update 12.10.14

Volatility as an asset class Las Vegas Sands (LVS) is recently down $1.94 to $54.17 after FBR lowered its estimates for LVS, Wynn Resorts (WYNN) and MGM Resorts (MGM) citing the 20% decline in Macau gross gaming revenue in November and a “soft” first week of December.  December call option implied volatility is at 36, […]

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Blogging Options: CBOE Morning Update 12.10.14

Economic news overseas not great this morning, but overseas markets steady (Asia mixed, Europe fractionally higher) after yesterday’s selloff.  Metals lower, 10-year 2.22%.  Chicago baseball fans prepare for subway series after signing pitchers.  Volatility as an asset class: Costco (COST) is up $1.50 to $144.54 in the premarket after reporting better than expected Q1 EPS […]

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CBOE Mid-Day Update 12.9.14

Volatility as an asset class Bank of America (BAC) is recently down 32c to $17.34 on the bank sees Q4 sales and trading revenue down linked-quarter, y/y. December call option implied volatility is at 19, January and February is at 20; compared to its 26-week average of 23. Citigroup (C) is recently down $1.19 TO […]

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CBOE Mid-Day Update 12.8.14

Volatility as an asset class Large Cap oil Services Company’s volatility is elevated as WTI Crude oil trades near $65 Baker Hughes (BHI) overall option implied volatility of 34 compares to its 26-week average of 28. Dril-Quip (DRQ) overall option implied volatility of 35 compares to its 26-week average of 29. Halliburton (HAL) overall option […]

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CBOE Volatility Update 12.4.14

Volatility as an asset class Sears Holdings (SHLD) is recently down 55c to $33.73 after reporting a Q3 loss of $5.15 per share on larger debt levels. December call option implied volatility is at of 67, January is at 70, March is at 65; compared to its 26-week average of 58. Kroger (KR) is recently […]

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Blogging Options: CBOE Morning Update 12.4.14

US stock futures mixed as ECB leaves rates unchanged.  Weekly Jobless a tad higher than expected.  NFP Parroll Report main economic item traders watching. Oil prices fractionally lower.  10-year 2.275%.  Volatility as an asset class: Disney (DIS) is up $).39 to $93.50 in the premarket after declaring an annual cash dividend of $1.15 per share, […]

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CBOE Mid-Day Update 12.3.14

Volatility as an asset class Energy indexes and ETF option implied volatility decreases three-year highs as energy prices stabilize Energy Select Sector SPDR (XLE) is recently up 1.13 to $82.13. December weekly call option implied volatility is at 39, December is at 24; compared to a level of 27 from December 2 and its 26-week […]

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CBOE Mid-Day Update 12.1.14

Volatility as an asset class Energy indexes and ETF option implied volatility has increased on wide oil and gas price movement. Energy Select Sector SPDR (XLE) December weekly call option implied volatility is at 39, December is at 30; compared to its 26-week average of 18. Oil Services Holders Trust (OIH) December weekly call option […]

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Blogging Options: CBOE Morning Update 11.28.14

Other than Black Friday shopping, Oil the talk of Wall Street.  OPEC failed to reach an agreement on a token production cut, WTI Crude at $69.40 per bbl.  This dragging the  S&P lower in early trading,  DJIA Futures flat, NASDAQ slightly higher.  Airlines shares soaring, drillers and majors down.  Gold down 1%, Silver off 3%.  […]