AT&T (NYSE: T) reached an agreement to acquire Time Warner (TWX) in a cash-and-stock deal valued at $107.50 per share, or about $85B, the companies announced Saturday. T reported Q3 profits of 74c on revenue of $40.9B versus the 74c and $41.15B that was expected. October weekly call option implied volatility is at 31, November is at 23; compared to its 52-week range of 11 to 22.