This definitely looks like a stock that's headed for sub dollar levels and the OTC market, however, there are 1424 Apr 20 2013 calls with a strike price of 2.5 and there are practically no puts. I can think of 3 reasons:
1. The pumpers think they can jack the price up temporarily and plan to cash in.
2. Someone owns a lot of shares and sold covered calls to try to squeeze out a few more dollars.
3. The company really does have a good product that will finally get FDA approval and turn things around.
4. A bunch of people made a poor investment decision by chance.
Which is it really? Disclosure: I am short a small amount but plan to massively increase my position if I can figure out what's really going on. Those July 2.5 puts are selling at only a 20 cent premium. If this stock goes to a few cents by this summer one can double their money.
seriously, you are shot this company? I hope you do well elsewhere... you might need it.
if you want to even think about a play (as far as hedging, but I would not), you might want to look
at ALIM. they are the ones leveraged and are doing debt offerings to finance their future marketing.
This company should be fine or better over the next 2+ years.
do your own due diligence and never short lottery tickets (with ok chances). if they succeed you will
be burnt big time.
anyway, what do I know.
Ofir, I'm not short this company and never have been. I was joking about the prior post. This company does however get shorted by many. I do believe the current price is ridiculously low, and to short from here would be dangerous; even for the shorts. Looks like I'm holding patiently just as you. I'm hoping PSDV doesn't try to raise more cash with out giving the current stockholders something to be happy about. I'd love to see the shorts have to live in their cars because they just lost the house.