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Strategies & Market Trends : The Options Box
QQQ 626.65+1.0%Jan 9 4:00 PM EST

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To: Robert V. Cavaleri who wrote (9706)2/22/2001 10:17:22 AM
From: hobo  Read Replies (1) of 10876
 
Good morning Robert,

This is the quote I currently get

YTYCV (EFNT March/01 @ 12.5) b 10.625 a10.875

My experience has been that in the early am, sometimes 10 to 15 minutes after the markets have open, the market makers take a few minutes to re-calculate and establish their bids/asks. I have heard it referred as "making the rounds", where the m/m recalculate and probably "see what the market is doing" as part of their re-evaluation but don't quote me on this.... (this is how it was explained to me.

So, in the particular case of a company that has specific news, I would view it as "normal" for this delay in the pricing porcess, since the m/m recalculate based on their particular formulas that are affected by the price of the underlying.

It could also be influenced by a dramatic change in volatility, which would increase or decrease the premium levels overall accordingly.

My feeling is due to the first explanation.

Finally, there is this site where you could get additinal info, even post your own specific question:

schaeffersresearch.com
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