VIT is trading $31.66, down 1.9% with IV30⢠up 0.2%. <img src="http://www.livevolpro.com/help/images/blog/vit_summary.gif"> I found this stock using another real-time custom scan. This one hunts for high vols. <b>Custom Scan Details</b> Stock Price >= 5 IV30⢠- HV20⢠>= 10 HV180⢠- IV30⢠<= -8 Average Option Volume >= 1,200 Industry != Bio-tech Days After Earnings >=10 <=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 VIT Charts Tab is included (<a href="http://livevol.blogspot.com/2010/09/vit.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). The yellow shaded area at the very bottom is the IV30⢠vs. the HV20⢠vol difference. <img src="http://www.livevolpro.com/help/images/blog/vit_charts.gif" width="600"> We can see: IV30â¢: 62 HV20â¢: 52 HV180â¢: 42 So vol is elevated relative to historical short term and historical longer term. Finally, let's look to the Options Tab (<a href="http://livevol.blogspot.com/2010/09/vit.html">in the article</a>). We can see that the Oct 30 straddle is priced at about 64 vol or a $3.45 sale. The Nov 30 straddle is 62 vol (or $5.90 to purchase). I believe earnings are probably NOT in the Nov options cycle, but it's a coin flip. <b>Possible Trades to Analyze</b> 1. Sell the Oct 30 straddle naked @ 3.45. Very risky and wins if VIT stock is in [$26.55, $33.45] on Oct expo. 2. Less risky, do the straddle sale and buy the Oct 25/35 strangle for $0.70 yielding a net credit of $2.75. This trade requires VIT stock to be in [$27.25, $32.75] (a tighter range than trade #1), but limits max loss to $225. The PnL chart for this trade is included (<a href="http://livevol.blogspot.com/2010/09/vit.html">in the article</a>). 3. Another trade is to sell the 64 vol Oct straddle at $3.45 and buy the 62 vol Nov 30 straddle for $5.90 yielding a net debit of $2.45. If stock stays here and vol stays here, the trade on Monday after Oct expo. looks about like this: Oct straddle sale @ $3.45 is worth $1.66 (parity) or a $1.79 gain. Nov straddle decays to $5.03. Net the trade "would be" worth $3.24 bought for $2.45 or a 24% gain. This is trade analysis, not a recommendation. Details, trades, prices, vols, charts here: http://livevol.blogspot.com/2010/09/vit.html Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>