XRTX is trading $16.23, up 0.5% with IV30⢠up 0.9%. The <a href="http://www.livevol.com/">LIVEVOL⢠Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/10/xrtx.html">in the article</a>. <img src="http://www.livevolpro.com/help/images/blog/xrtx_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> ------------------------------------------------------------------- XRTX is a provider of modular enterprise-class data storage solutions and storage process technology. I found this stock using a real-time custom scan. This one hunts for low vols. <b>Custom Scan Details</b> Stock Price>= $7 and <= $70 IV60⢠>= 1 IV60⢠- HV60⢠<= -8 and >= -40 HV180⢠- IV60⢠>= 8 Average Option Volume >= 1,200 Industry != Bio-tech The goal with this scan is to identify intermediate-term implied vol (IV60â¢) that is depressed both to the intermediate stock movement (HV60â¢) 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) and want to avoid bio-techs (and their crazy vol). The XRTX Charts Tab is included (<a href="http://livevol.blogspot.com/2010/10/xrtx.html">in the article</a>). The top portion is the stock price, the bottom portion is the vol: IV60⢠- yellow vs HV60⢠- blue vs HV180⢠- pink). <img src="http://www.livevolpro.com/help/images/blog/xrtx_charts.gif" width="600" /> We can see: IV60â¢: 55 HV60â¢: 63 HV180â¢: 64 So, IV60⢠is depressed relative to the intermediate term and long term realized movement of the stock. We can also see that the stock gapped down hard after earnings on 9-30-2010, and since then has been essentially frozen. Even given that limited move, the implied is still <a href="http://livevol.blogspot.com/2010/10/xrtx.html">in the article</a> the intermediate-term realized. Note though, the HV10⢠is a minuscule 28.41. Finally, let's look to the Options Tab (<a href="http://livevol.blogspot.com/2010/10/xrtx.html">in the article</a>). <b>Possible Trades to Analyze</b> 1. We're looking at the IV60â¢, which is more like Dec than Nov. A Dec 15/17.5 strangle purchase for $1.65, buys 54 vol (ish). It requires XRTX to be outside of [$13.35, $19.15] if held to Dec expo. 2. Doing trade #1 and selling some wings, like the Dec 12.5/20 strangle reduces the total debit to ~ $1.15, though gives up some "big move" room. It's hard for me to stomach naked purchases, so I threw this possibility out there too. 3. Ok, a bit wild here, but how about selling the Nov strangle and buying Dec. I know that's selling vol that I just said was low, but if the stock hangs around for a few more weeks as it has, that long strangle in Dec will look damn cheap with a sale of the Nov to give it a hair cut (if that's a winner). Just fyi, not in love this trade. 4. Maybe this thing can't gap down much further in the near-term without any earnings news?... Selling the 59 vol Dec 12.5 puts is a backwards yet somehow reasonable approach to this phenomenon as well. 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/2010/10/xrtx.html">http://livevol.blogspot.com/2010/10/xrtx.html</a> Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>