No matter what you believe in Long/Short/Neutral the PPS is the true indicator of the real sentiment. So far, it has been pretty pathetic.
5 Q of beat, Decent growth, higher price targets by analysts, reasonable forward PE, Institutional ownership (70% As of now), brand value etc... but, the stock cannot even muster a decent upside move, let alone sustain it. Shorts have a strong upper hand even after 5Q of earnings beat and some cases even a raise...
Anyways, my point is if SKUL does have some upside move on the back of the recent earnings, in next week or 2 then it is going much lower.
Close above 15 could get some attention from the shorts and a close above 16 can lead to a new uptrend (If you draw a trend line above all the previous peaks since IPO)
The support levels don't seem to make any sense on this stock. It moves below 200 dma every so often.
A close over 16 is complete with decent volume ~ 1M shares).
Step 2 is complete...
Now the real test comes in the form of sustaining the move. If that happens in the next day or two then this will def. start a new uptrend.
SKUL was up double + as a percentage of what the market did today. There was 2 major up swings in the stock price of SKUL today, both on higher volume that time period.
I have noticed that (I assume shorts) seem to bring the price down bit by bit on low lots of stock.
"someone would need to sell 110K contract just to cover the short position"
Your statement makes it sound like you don't have much idea about options or how they trade and how to read the action.
If the shorts need to protect themselves... they need to do one or both of the following
1) Buy calls to protect against upside
2) Sell puts to hedge their shorts
But, looks like majority of the call options were sold by the longs (Covered calls) at the bid.
What does it mean?
Somebody could sell a million shares in next few days brings the price down to $13 or lower, but by selling the Aug-12.50 call for $3... they already locked in the gains.