whoever wrote those calls will have to surrender 2.5M shares to the buyers of the calls if the PPS is above 8! Think about that. With such low volumes the call writers must be working hard not to let that happen..but the DEA decision is the real wild card and this is a real fight between those 2 entities (buyers and sellers of the 2013 April 12 call.
No, they are expiring on Friday April 20th. In addition, there are 19,740, 21,945, 12,090, and 26,860 open interest in April $9, $10, $11, and $12 Option calls; respectively. These calls were sold at premium by MM and Hedge managers who shorted the stock and tried very hard to manipulated the stock and delay the DEA final scheduling by submitting negative biased comments to over while the DEA in order for these calls to expire worthless.. Also, some of these calls were sold as covered options by the long to collect premium while waiting.
Symbol Price Change Bid Ask Volume Open Interest
ARNA130420C00008000 0.28 Down 0.06 N/A N/A 212 25,849
Why would you sell now and then buy back in after DEA? If you sell now, you miss the pop from DEA. No one knows how much of a pop that will be, but it will happen. If sales are good, you aren't going to get your original price point back, if sales really are bad, then the stock would be heading lower and you wouldn't want to purchase anyway. So just what kind of advice are you giving?
IF the DEA takes much longer you will have the EU decision that will be the catalyst to drive this up. If you believe in ARNA don't sell a single share. We have major catalysts coming over the next 4-6 months.