![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0U5iLLZmHhQ4SGlCPTa3_EjF75TslmbXVeGlwoYR1TdhY5A3AZODUcAJ6vIHhOM_Kbcz9tnnMs9wcUjCju4nIsFxuTsVmj4CRpis3dQUrQb36mBL7rDv01pggyjiOhxOggiqlFuICsfs/s400/fmcn_summary.gif)
The company has traded over 7,300 options in the first three hours on total daily average option volume of just 2,281. The interest is selling; mostly in Sep. The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSdT8Znh7Hnq7IzaSaJb4JGqBhCiSttGIApxBYYd39LHnwZrtonTX2sMVUsUxOTJ6LkMRuJr92Ho_-B8QKavPxn06q7MPO-VtV1CprtR_-cqyMFkAwWY7YWXzpqY4p3hb2MradH6bgaO0/s400/fmcn_stats.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0TKMQoAlylV2l33G1k5lJD-ge28bTD6NT8CWNIowXxoFFTu6V1h5mv0SElHBhuhrmANjpSvTSfLRGzeWgblzPDIdgD2akM2rmhchr6MR2cfID90C7ZAXijIPui926xzxiS-UspL-XTw4/s400/fmcn_trades.gif)
The Options Tab (click to enlarge) illustrates the action and that it's mostly opening (compare OI to trade size).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4YMGIGvABBLOorVechoOO5XZbP-nCK3zcOdMiwfDpwiMlzJ1a6lrwazORsWZTSle3YZTw440divKq3WBXpCMQ6SB-QYSRs4SrD1Ar8TWmGxoff7OEkMsmOWeM3UTd45lFboykYozfug4/s400/fmcn_options.gif)
Before we look to the skew, let's look at the Charts Tab. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjy8neahOJsy7N6h4scUHU-15mrGACziZYUexvjtYxo_FyxXBpfiL0H6pNOZIOhSIBB5TPvGkMmwRPlxR7o-fkQRFaApb0OaB6rwTls8kJm4WGMivoNjIAgtbCYdQggm3Rhvs6lSODSiz0/s400/fmcn_charts.gif)
Look how the IV30™ has stayed high as the HV20™ has dropped off. There is still a 16 point vol difference even after today's 4+ point drop in IV30™. Note that earnings are due out in 1-2 weeks; probably after this expo.
The Skew Tab snap (click to enlarge) illustrates the vols by strike by month.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpBOW_kYxtnMaosYmeEkasNhrhp2Yo3DW1glLCUWxqsAjPMGXgsUeHGXo0wcUWip1q8ArN4WVQXlvX4INfoM-Zqy8bS0YtJnh9R-5YNNGyIVbD4IV48xSQyEVT41UXm9e1Jd7Fc14DwxE/s400/fmcn_skew_8-17-2010.gif)
I've highlighted the downside skew. The trades have netted short straddles and short puts. A ~$2 straddle sale in Sep is sitting up there. The stock's 52 wk range is [$8.35,$19.26]. I like that this sells the elevated vol. Not sure about a naked straddle on this one.
This is trade analysis, not a recommendation.
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