BRCD is trading $5.80, up small with IV30⢠up 2.2%. The <a href="http://www.livevol.com/">LIVEVOL⢠Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/11/brcd.html">in the article</a>. <img src="http://www.livevolpro.com/help/images/blog/brcd_summary_11-19-2010.gif" /> ------------------------------------------------------------------- <a href="http://www.livevolpro.com/help/free_trial.html"><img height="200" src="http://www.livevolpro.com/help/images/blog/lvp_trial_ad.gif" /></a> For a limited time we are offering a FREE real-time trial to Livevol Pro⢠for non-professional traders. You can get your trial by following the directions here: <b><a href="http://www.livevolpro.com/help/free_trial.html">Click for Free Trial Offer</a></b> ------------------------------------------------------------------- I posted an article on this reverse skew on 9-7-2010. <b><a href="http://livevol.blogspot.com/2010/09/brcd.html">Brocade (BRCD) - Stock Up, Vol Pops & Skew Goes Backwards on Takeover Rumors</a></b> Today Cathy Clay of the Livevol Strategy Group pointed out that the Dec 6/7 call spread is going for crazy cheap (in my opinion) in a takeover stock with earnings in the Dec cycle. Let's look to the Skew Tab first (<a href="http://livevol.blogspot.com/2010/11/brcd.html">in the article</a>). So the Dec 6 calls are priced at 53.5 vol and the Dec 7 calls are priced at 68 vol. Even better, BRCD has earnings in the Dec cycle and the 6 strike is the ATM. The cherry on top?... The markets are a cab ($0.01) wide. The Options Tab (<a href="http://livevol.blogspot.com/2010/11/brcd.html">in the article</a>) illustrates the prices. <b>Possible Trades to Analyze</b> 1. Buying the Dec 6/7 call spread for $0.17 seems like the bet here. It's a small bet with a MaxGain:MaxLoss of 4.89:1. It scalps skew in a call spread, trades on tight markets, buys earnings vol ahead of the rise and has the added benefit of a possible takeover (or takeover rumor). The fact that it's this cheap actually implies the likelihood of the stock going to $7 is pretty low... Just to temper expectations... This is trade analysis, not a recommendation. <b>Follow Live Trades and Order Flow on Twitter: @Livevol_Pro</b> Details, trades, prices, vols, skews, charts here: <a href="http://livevol.blogspot.com/2010/11/brcd.html">http://livevol.blogspot.com/2010/11/brcd.html</a> Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>