Verylong...I understand the logic of "...the reason is that earnings are due pre-market tomorrow." when the earnings will in the case of PMTI.
My not understnading came into play with one like ERIC which had their quarterly report out on 3/21 and was the reason I bought the ERIC May 42.5 calls. Good reports usually generate the PPS upward for a couple days. In ERIC's case, unfortunately the PPS went down and I was about to lose two thirds of my purchase price. However, I decided the move downward was going to be short lived and the effects of the report would start to show.
This last week, that is what happen as the May 42.5 calls have now gone above my price of $.30 to %.40. That's where I guess your statement of "The GREATEST percent yield on an option that goes up or down happens the closest month towards expiration. A May 40 call moving higher will appreciate faster than a September 40 call with the same increase in stock price due to being closer in expiration." now comes into play.
Now based on your next statement of "In fact, if there were to have been an April 40 call expiring THIS Friday, it would have been the better buy yesterday, because the percentage increase in price would be much higher than a May 40 given the same increase in stock price." I should make definite plans to sell the May 42.5 option in the next day or so. Tomorrow I'll be watching it closely and, more than likely make my move.
If my logic doesn't agree with yours, let me know.
G' day Mate,
Aussie
Australia is a beautiful place with wonderful people that just love Americans. You've got to go there some day. Give it a go Mate.