CML is trading $18.02. <img src="http://2.bp.blogspot.com/_hMry1m7UF10/TJjAr7u8jcI/AAAAAAAAE4M/FU4dkEkyZfA/s1600/cml_summary.gif"> I found this company using a custom real-time scan I developed on Livevol Pro. The details are included below: <b>Time Spread Scan Details</b> Stock Price >= $5 Avg. Option Volume >= 1500 Industry != Bio-Tech Sigma1 - Sigma2 >= 7 Sigma1 >= 1 Sigma2 >= 1 Days After Earnings <= 10 >= 70 Lets take a look at the Skew Tab first (<a href="http://livevol.blogspot.com/2010/09/cml.html">in the article</a>). In this case, I'm interested less in the shape of the skew than a simple graphical representation of the vol diffs ATM. I've highlighted the month to month vol difference. The company had earnings 7-28-2010 AMC, so a reasonable projection is that the next earnings release will be after Oct expo which is 10-15-2010. That means a time spread not only buys low vol against selling high vol, but it also gets the benefit of buying a vol event (earnings). Let's finally look to the Options Tab for prices (<a href="http://livevol.blogspot.com/2010/09/cml.html">in the article</a>). It looks like with some reasonable liquidity an Oct 17.5 straddle could be sold @ $3.05 while the Nov 17.5 straddle could be purchased for $4.60, or a total of a $1.55 debit. Keep in mind, time spreading by purchasing the back is long vega. That means a takeover will likely be a large loser. The ideal situation here is that CML pins on the strike at Oct expo, yielding a cheap long straddle in Nov with an earnings event. The worst case scenario is a large move away from the strike pre Oct expo. A rise in vol without a stock move is also a winner. A few other things to note. IV30™: 84.22 HV20™: 100.80 HV180™: 76 So this stock moves pretty big and both the 86 vol sale (Oct) and 79 vol purchase (Nov) are substantially less than the recent short term realized vol. A Nov ATM straddle purchase in and of itself looks somewhat reasonable. This is trade analysis, not a recommendation. Details, trdaes, prices, vols, skews, charts here: http://livevol.blogspot.com/2010/09/cml.html Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>