** UPDATE This is an update to the prior article from 7-20-2010 (i.e. two days ago): <b><a href="http://livevol.blogspot.com/2010/07/itri.html">Itron (ITRI) - Strangle Buyer on Earnings Stock Move Pattern</a></b> ITRI is trading $56.97, down $5.76 with IV30™ up 11.4%. <img src="http://1.bp.blogspot.com/_hMry1m7UF10/TEhpOckRN5I/AAAAAAAADro/VpjhU0Uf83Y/s1600/itri_summary_update.gif"> In the 7-20-2010 article I noticed an Aug 55/70 strangle buyer for $1.75 into earnings which are due out in six days on 7-28-2010. ITRI has moved more than the straddle implies for the last two earnings cycles, and it looked like this trade was betting on a third move. It turns out that the move was before earnings - it was today. The updated Options Tab is included (<a href="http://livevol.blogspot.com/2010/07/itri_22.html">in the article</a>): Even assuming the Aug 70 calls can't be sold (i.e. there is no bid), the Aug 55 puts are now worth ~ $2.27. That's $0.52 winner or 29.7% in two days. In the words of Adam Sandler, "Not too shabby." That gambler won. This is trade analysis, not a recommendation. Details, trdaes, prices, vols, skews, charts here: http://livevol.blogspot.com/2010/07/itri_22.html
If the stock had rallied the same, you'd have implied volatility decline? Is the "real" premium-selling occuring now?