RIG is trading $59.98, up 0.9% with IV30⢠down 2.7%. <img src="http://3.bp.blogspot.com/_hMry1m7UF10/TJzn9cnWdQI/AAAAAAAAE-w/ECo6PevNnec/s1600/rig_summary.gif"> I found this company using a custom real-time scan on Livevol Pro⢠searching for low vol 60 days out. <b>Custom Scan Details</b> Stock Price >= $10 IV60⢠>= 1 Industry != Bio-tech Average Option Volume >= 1000 IV60⢠- HV60⢠<= -8 >= -40 Let's take a look at the Charts Tab (<A href="http://livevol.blogspot.com/2010/09/rig.html">in the article</a>). The vol chart only: (IV60⢠- yellow vs HV60⢠- blue vs HV180⢠- pink). The yellow shaded area at the very bottom is the IV30⢠vs. the HV20⢠vol difference. <img src="http://4.bp.blogspot.com/_hMry1m7UF10/TJzn84XOW7I/AAAAAAAAE-s/xvWu_cr7les/s1600/rig_charts.gif"> We can see IV60⢠is 39, while HV60⢠and HV180⢠are 53. In English, the 60-day implied vol is cheaper than the stock as moved over the last 60 trading days and the last 180 trading days. The last earnings cycle for RIG was 8-4-2010. The next is 11-3-2010. That means the Nov options not only have low vol, but they have an embedded volatility event (earnings). Let's look to the Options Tab (<A href="http://livevol.blogspot.com/2010/09/rig.html">in the article</a>). <b>Possible Trades to Analyze</b> 1) Buying the Nov vol naked - Purchase the Nov 60 straddlefor $7.20 or 38 vol is one approach, though risky. 2) Buy the Nov ATM straddle but sell the Nov 52.5/70 strangle @ $1.75 for a total debit of $5.45. That sells 44 vol in the OTM puts and 34 vol in the OTM calls. 3) A little more tricky is to sell the Oct 52.5 puts to reduce the debit by $0.25. Then, assuming the stock isn't below $52.5, you could do trade #2. 4) Finally, risky but more interesting could be to do #3, but sell 2 of the Oct puts and of the Nov puts after. Or selling the Nov 50 put with the Nov 52.5. Details, trades, prices, vols, charts here: http://livevol.blogspot.com/2010/09/rig.html This is trade analysis, not a recommendation. Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>