AAI is trading $7.35, up 61.5% with IV30⢠down 55.4% on takeover news. <img src="http://4.bp.blogspot.com/_hMry1m7UF10/TKDczV0kiDI/AAAAAAAAE_w/NHxY-S7pofA/s1600/aai_summary.gif"> The news from United Press International: "U.S. discount carrier Southwest Airlines said Monday it had agreed to purchase AirTran Airways for $1.4 billion in cash and common stock. The deal values AirTran at $7.69 per share, a premium of 69 percent over the airline's closing share price on Friday, Southwest said in a statement." Unfortunately, I think there may be some foul play here pre-takeover announcement. Jeff Kearns from Bloomberg alerted me to this and has already posted an article. First, we can look to the OI chart for the Nov 5 calls (<a href="http://livevol.blogspot.com/2010/09/aai.html">in the article</a>). That pop came on 9-23-2010 (so the trades were 9-22-2010), 750+ of them. The company averages ~270 calls in total, so 750+ on one line in Nov where the total OI on all strikes was just 5 (five) is "unusual." I've included the Options Tab and below that the Time & Sales tab for 9-22-2010 in the Nov 5 calls (<a href="http://livevol.blogspot.com/2010/09/aai.html">in the article</a>). That doesn't look like an accident, just sayin'. An ~$11,000 purchase turns into ~$175,000 in 5 days on several times daily average volume... Boo... This is trade analysis, not a recommendation. Details, trades, prices, vols, charts: http://livevol.blogspot.com/2010/09/aai.html Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>