There is a batch of Sept. $22.5 puts now open (1,100 contracts) which expire in 2 days. The loudmouths here are trying to cash in on that by tipping the stock. At $22 they make 50 cents, 21.50, they would get $1. They are shorting to get their leveraged positions up larger in % terms.
Well, that 22.50 has seemed suspiciously sticky for quite some time. Since that is the max pain level, it should close near that price today. The inability of the stock to participate in the general uptrend of the pharmas recently has caused me to lighten up my position, although I still hold 7,000 shares. The short interest more than doubled during August and is probably even larger now. Smells funny.
Don't like it either bear...can't completely justify it rationally (option ex, profit taking, etc.). Unless, someone is hold this down to jump on board for the move going into Q3 and Q4. We should be back on track by then and this will look like a speed bump.
Sentiment: Strong Buy
even though I am long, I just don't see how a few shorts on this board can move the stock price. I also don't see any problem with the company based on the presentations and past earning reports. I see short interest rising fast in the last couple of month. but I seems like all those shorts are synchronized to the management cashing out.. so if we can figure out how many more $1.20 options are out there then we might have an answer to this down wave. .