Somebody could give more insights on correlation of option and stock price markets. If the large shorts are hedge funds, they must have huge protection from options as hedge. Unless the shorts know more than insiders, this is insane for 50% short interests at such low level price. Unless the company declares bankcruptcy in short term, which I don't see from clinical programs and financial condition, the shorts are taking more risks than longs. I am not smart enough to know their sophisticate hedging model, but I know their system is not perfect. There was fiasco of LMCT in 1990s. Some hedge funds closed in 2008. When something hits its critical point, all their protection loses effect. I wish the big funds of longs can have good handle of the enemies weekness, and can choose the perfect timing to attack them.
The institutions that sell options try to make the higher percentage of calls and puts expire worthless. They make money on the premium they sell the option for. More than 50% of all options expire worthless. In the past options expired on the third Friday of the every month, now it expires weekly on certain stocks. That's why some stocks that beat earnings get pulled back to mute the move. The negativity comes from the media trying to explain why it sold off without a clue that the price was actually manipulated.
Well...with the upcoming CC on Monday. It would be wise for them to at least take some profits or lighten up somewhat...this crowd is a surprisingly resilient and a dangerous group. Taking enormous risk just based on the Enchant trials alone.