BBY is trading $34.46, up 1.7% with IV30™ up 4.6%. <img src="http://2.bp.blogspot.com/_hMry1m7UF10/TI5waR00fVI/AAAAAAAAEts/wpomlu0WbdA/s1600/bby_summary.gif"> BBY has earnings out tomorrow before the bell. For the last eight quarters a sale of the BBY ATM straddle the day before earnings and a purchase the day after has been a winner eight times in a row, with a minimum gain of 32.5% and a max gain of 70.7%. The stats I derived from Livevol Excel are included (<a href="http://livevol.blogspot.com/2010/09/bby.html">in the article</a>). The front month vol is 78, the back month is 42. I have included the Skew Tab (<a href="http://livevol.blogspot.com/2010/09/bby.html">in the article</a>). <img src="http://3.bp.blogspot.com/_hMry1m7UF10/TI5wbXhBNQI/AAAAAAAAEt8/PnaBl7U1tuQ/s1600/bby_skew_9-13-2010.gif"> Note how much higher the red curve is to the other months. This is not a mistake of course, with just 4 days to go to expo, the earnings event creates a weighted average of vols that is substantially earnings (1/4 days). The vol should be much higher in Sep as it is. I see the Sep 34 straddle priced at $2.30. The The Options Tab (<a href="http://livevol.blogspot.com/2010/09/bby.html">in the article</a>) is included below. <b>Trade to Analyze</b> Sell 1 Sep 34 straddle @ $2.30 Let's see what happens on close tomorrow. A few things to keep in mind. 1) Market feels bullish lately. 2) I believe this is a huge earnings release for BBY as they project the holiday season. Some alternatives to naked straddle selling are: 1) Sell the Sep straddle, Buy the Oct straddle (though this is long vega) 2) Sell the Sep straddle buy the 31/37 strangle. This yields a $1.80 credit with protection to both sides. 3) Sell a 34/35 strangle, buy a 33/36 strangle (or something like that). 4) Forget all this analysis, maybe you want to make a bet on direction and buy a call spread or put spread. This is trade analysis, not a recommendation. Details, trades, prices, vols, skews, charts here: http://livevol.blogspot.com/2010/09/bby.html Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>