YHOO is trading $16.50, down 0.3% with IV30⢠up 0.4%. The <a href="http://www.livevol.com/">LIVEVOL⢠Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/11/yhoo_15.html">in the article</a>. <img src="http://www.livevolpro.com/help/images/blog/yhoo_summary_11-15-2010.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 wrote about YHOO last week. You can read that here: <b><a href="http://livevol.blogspot.com/2010/11/yhoo.html">Yahoo (YHOO) - Takeover Rumors Push Vol and Skew</a></b> My favorite trade in that blog: Sell the Nov 17 calls @ 0.43 and buy 4 of the Nov 19 calls for a total of $0.40. This trade yields a little credit, and wins huge if YHOO is taken over for a premium over $20. Today, 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 YHOO Charts Tab is included (<a href="http://livevol.blogspot.com/2010/11/yhoo_15.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. We can see: IV30â¢: ~41.31 HV20â¢: 23.22 HV180â¢: 30.71 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/yhoo_15.html">in the article</a>). <b>Possible Trades to Analyze</b> 1. Sell the Dec 17 straddle @ $1.69 (~41 vol). Beware the takeover talk and stock and vol moves whether or not it's realized if there is a rumor... again... 2. Do #1 above, but buy 1 Dec 18 call and 2 Dec 19 calls. That yields a $1.69 sale and a $0.86 purchase or a net credit of $0.83, safe to upside if there's a takeover at a reasonable premium while still collecting premium. This is naked downside. 3. Do #2 above, but buy a Dec 15 put for $0.21. This yields a $0.65 credit but lowers downside risk and margin requirements. At this point, this is less about selling vol and more about creating a nifty spread. 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/yhoo_15.html">http://livevol.blogspot.com/2010/11/yhoo_15.html</a> Legal Stuff: <a href="http://www.livevolpro.com/help/disclaimer_legal.html">http://www.livevolpro.com/help/disclaimer_legal.html</a>