LPS is trading $30.75, with IV30⢠down 4.0%. The <a href="http://www.livevol.com/">LIVEVOL⢠Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/11/lps.html">in the article</a>. <img src="http://www.livevolpro.com/help/images/blog/lps_summary.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 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 LPS Charts Tab is included (<a href="http://livevol.blogspot.com/2010/11/lps.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¢: ~48.03 HV20â¢: 37.48 HV180â¢: 33.06 So, IV30⢠is elevated relative to the short term and long term realized movement of the stock. Let's look to the Options Tab (<a href="http://livevol.blogspot.com/2010/11/lps.html">in the article</a>). Unfortunately there isn't a lot of liquidity here - the markets are wide, though OI is large enough that there is some trading. The company averages 1,291 contracts traded a day, so just above my filter. <b>Possible Trades to Analyze</b> 1. Sell the ATM straddle @ $2.00 naked, very risky. 2. Do #1 above, but buy the Nov 25/35 strangle for $0.35, yielding a net credit of $1.65. 3. Go one sided, sell just a call or a put. 4. Do #3, but cover it up with the OTM option (so sell a call spread or sell a put spread.) One note here, I think if you like this vol to sell, don't reach for the prices. If you can't get a reasonable fill, skip the trade in my opinion. And a final note, check out the stock movement as it dipped from ~ $34 down to ~$26, and now has climbed back up - there is reason for elevated vol, the question is, will the stock stick for two weeks? 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/lps.html">http://livevol.blogspot.com/2010/11/lps.html</a> Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>