ARM is trading $14.93 with IV30™ up 0.9%. <img src="http://3.bp.blogspot.com/_hMry1m7UF10/TJovEB76SII/AAAAAAAAE68/j7En0ASTg8k/s1600/arm_summary.gif"> The company has traded over 12,000 options in the first three hours on total daily average option volume of just 1,964. The largest trade has been 5,000 Nov 14/15 strangle sales (10,000 contracts) @ $2.00. The Stats Tab and Day's biggest trades snapshots are included (<a href="http://livevol.blogspot.com/2010/09/arm.html">in the article</a>). The Options Tab (<a href="http://livevol.blogspot.com/2010/09/arm.html">in the article</a>) illustrates that the calls and puts are mostly opening (compare OI to trade size). You can also see that Nov vol is elevated to Oct because of a potential earnings cycle (last cycle was 8-3-2010). The Skew Tab snap (<a href="http://livevol.blogspot.com/2010/09/arm.html">in the article</a>) illustrates the vols by strike by month. <img src="http://2.bp.blogspot.com/_hMry1m7UF10/TJowT01-v2I/AAAAAAAAE7k/VL87fJwnm_k/s1600/arm_skew_9-22-2010.gif"> We can see Nov elevated to Oct. Other than that, a pretty normal skew, though the 17 strike does show a relatively large divergence. Finally, the Charts Tab (6 months) is below (<a href="http://livevol.blogspot.com/2010/09/arm.html">in the article</a>). The top portion is the stock price, the bottom is the vol (IV60™ - yellow vs HV60™ - blue vs HV180™ - pink). The strangle sold 53.5 vol on average. I see that IV60™ is 53, while HV180™ is 56 and HV60™ is 57.6. This vol sales feels cheap to me. Even odder to me, ARM does have a bit of a history of moving on earnings news more than the straddle was pricing. The 52 wk range for ARM is [$6.80, $17.22]. The strangle sale on Nov expo wins if the stock is in ($12, $17) which is a pretty wide range. Basically, I'm not in love with this trade, but selling options usually makes me feel warm and fuzzy. This is trade analysis, not a recommendation. Details, trades, prices, vols, skews, charts here: http://livevol.blogspot.com/2010/09/arm.html Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>