Zeev's Turnips Patch-No Politics (ZEEV)

[mboerin]

BSTE will likely trade more than three million shares tomorrow, the volume on April 8th, the first trading day after a similar positive earnings pre-announcement. And April 8th did not have the added volatility of being an options expiry day. Will the open interest of 1000 calls July 45 (100,000 shares) be enough to warrant such an effort to suppress the price early in the day?
Those 1000 odd calls were offered all day at 10 cents with no takers. I hope their owners haven't forgotten about their bid.....smiley.
I do have July 40 calls, which out of sheer obstinancy, had not sold even though BSTE's price over the last week or so drifted down from 45 to mid 42. Sometimes you get lucky.
Because I've been watching these calls, I can also say that this earlier price decline, if it was a "price control" effort, worked in that two-thirds of the largest block of in the money July calls - at 35 - sold out on Tuesday.

BTW, I listened to "pre-announcement" conference call, and from that it was clear that the July 29th formal earnings report will include raised guidance for the balance of the fiscal year. Apart from the revenue and eps surprise, they mentioned that earlier competition worries have not materialized and gross margins were up.

My first post here; appreciate the offerings of all.