There are almost 11,000 open call contracts expiring next Friday. If the contracts are in the money, the contract writers have to provide those shares (if the option holder decides to exercise them).
On Friday December 21, potentially 1.1 million shares need be supplied and another 0.45 million short sales to be covered. In essence, shorts need over 1.5 million shares by next Friday. No really surprised why shorts have been so active in the past few days knocking on everyone’s door for CYCC shares.
MY ADVICE TO YOU ALL LONGS:
1) Call your brokerage and restrict your shares from being borrowed
2) Put a sell order of ALL your shares with a limit of $20.00+ and GTC (Good till cancelled). This step is very important since it’s preventive against short selling.
I’ve been investing in CYCC for the past 4 years. We all longs have been screwed by shorts so many times. It’s payback time! Let’s join forces and take the shorts down. Who’s with me?
Sentiment: Strong Buy
Reelin, this stock has never had lots of shorts, especially when it was below one. Don't blame them for the SP, blame the speculative nature of the company and the lack of confidence in its management. And I'm not at all sure it is not a myth that you can prevent your shares from being lent out by your broker simply by putting a high sell order limit on the stock.
Also not sure you can call a company and request they not allow your shares to be borrowed. I would guess that many brokerage agreements allow for the brokerage to lend shares because "your shares" don't really exist in your name. They are simply an accounting / electronic entry. If you want to prevent your shares from being borrowed, I would guess you would need to have the shares actually in your name and maybe even your possession.
Maybe somebody can verify this with their broker . . but lots of myths floating out there how to prevent shares from being shorted. Besides, shorting lends to liquidity, and a stock like this needs liquidity so that shares can be traded on the electronic market without causing a huge variance in the stock price.
The bottom line is it doesn't matter if there is shorting here IF you are a long term holder and believe in the product. Everything will work itself out in favor of the longs if the company prevails. If not, we are all going to lose anyway. If you want to trade a stock, I would find one with much more float, making it far easier to get in and out. I've always said that.
Thanks to all longs. I think we stopped the shorts. A see a nice doji in the chart and Chande Momentum Oscillator (CMO) has turned positive. We definitely should see a nice pop by next Friday when the 11,000 call options expire.
As you all can see, we can make a difference. Go CYCC!!!
That sir is another of the reasons I'm not borrowing any of my shares to those criminals. IT IS PAYBACK TIME!. All of the shorts crying denials in panic on this message board must be very worried..
Sentiment: Strong Buy