AET is trading 30.59 with earnings BMO tomorrow. <img src="http://1.bp.blogspot.com/_hMry1m7UF10/S9iAPJuanyI/AAAAAAAACFw/I1531upcYmw/s1600/aet_summary.gif"> With earnings coming up I looked at the trends (vol). It turns out that selling the front month ATM straddle the day before earnings and buying it back the day after has won 6/7 times. Further, the one loss was the smallest absolute move of all. The stats are included. <img src="http://3.bp.blogspot.com/_hMry1m7UF10/S9iAPlPaabI/AAAAAAAACGA/Bkks84gHeVk/s1600/aet_e_stats.gif"> The Options Tab demonstrates the current prices - the ATM front straddle has fair value of ~ $2.49 with nice and tight/liquid markets. The Earnings & Dividends Tab for the last 7 quarters are included. First the most recent three quarters (all wins; <a href="http://livevol.blogspot.com/2010/04/aet.html"> in the article </a>): What we're lookin' at: (1) The top ROW is AET stock price 5 trading days before earnings through 5 trading days after. (2) The second ROW are the front 2 month ATM straddles for the same period - focus on purple - the front month. (3) The third ROW is the implied vol for those straddles - focus on the red - the front month. NOTE: The red line always collapses after earnings - this is called the vol crush after earnings. And then the four prior to that (3 wins/1 loss <a href="http://livevol.blogspot.com/2010/04/aet.html"> in the article </a>). One word of caution - AET is an insurer - so you never know about the crazy news... This is trade analysis, not a recommendation. Details, vols, straddles, prices here: http://livevol.blogspot.com/2010/04/aet.html