IDCC is trading $34.00, up 0.8% with IV30⢠down 1.0%. The <a href="http://www.livevol.com/">LIVEVOL⢠Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/12/idcc.html">in the article</a>. <img src="http://www.livevolpro.com/help/images/blog/idcc_summary_12-2-2010.gif" /> I found this stock using a real-time custom scan. This one hunts for high vols. <b>Custom Scan Details</b> Stock Price >= $7 and <= $70 IV30⢠- HV20⢠>= 10 HV180⢠- IV30⢠<= -8 Average Option Volume >= 1,200 Industry != Bio-tech Days After Earnings >=10 and <=60 The goal with this scan is to identify short-term implied vol (IV30â¢) that is elevated both to the recent stock movement (HV20â¢) and the long term trend in stock movement (HV180â¢). I'm also looking for a reasonable amount of liquidity in the options (thus the minimum average option volume), want to avoid bio-techs (and their crazy vol) and make sure I'm not selling elevated IV30⢠simply because earnings are approaching. The IDCC Charts Tab is included (<a href="http://livevol.blogspot.com/2010/12/idcc.html">in the article</a>). The top portion is the stock price, the bottom is the vol (IV30⢠- red vs HV20⢠- blue vs HV180⢠- pink). We can see: IV30â¢: 50.11 HV20â¢: 38.29 HV180â¢: 29.84 So, IV30⢠is elevated relative to the short term and long term realized movement of the stock. It looks a vol sale over 43 would be reasonable, a purchase under 24 would also be reasonable. Let's look to the Options Tab (<a href="http://livevol.blogspot.com/2010/12/idcc.html">in the article</a>). Note how high the Jan vol is. This is a great way to see how the IV30⢠is a blended average of two months. Selling 43 (ish) vol would be reasonable, which is actually above the Dec 34 straddle. The Jan 34 straddle is priced at ~53 vol, but carries more risk. The second month is priced at around 53 vol, or 9 points higher than Dec. <b>Possible Trades to Analyze</b> 1. Sell the Dec 34 straddle @ $2.25 or 41 vol. 2. Sell the Dec 33/35 strangle @ $1.40 or 42 vol. 3. Sell the Dec 32/37 strangle @ $0.70. Note that the Dec 37 calls are 48 vol. Whoa... Takeover rumor? 4. #3, but cover the upside with a 38 call purchase for 0.25. That's a $0.45 credit, max upside loss is $0.55, naked downside. Note for trades 1-3, those are naked short. I thin covering the upside in a takeover happy world is a good idea. Another approach is to sell meat (ATM) and buy OTM on a ratio, like 3:1. This should yield a premium if the stock sits and a nice win if the stock is taken over. 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/2010/12/idcc.html">http://livevol.blogspot.com/2010/12/idcc.html</a> Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>