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Post# of 72997
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samaelrocks

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samaelrocks

Re: Tommy86 post# 19348

Tuesday, 04/29/2008 5:01:33 PM

Tuesday, April 29, 2008 5:01:33 PM

Post# of 72997
I can answer from recent experience coupled with info from Options4u and Optionsmonster.

When you buy options up to earnings, you are paying a premium. Basically, the demand is higher before earnings. So that 5.5 close on VEO yesterday was reflective of what the PPS was expected, hence, the premium. Then the selling of contracts starts.

Am I right?
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