Many short positions are covered with long positions. It's easier to sell a long position and get short than just short.
What's with Alpha Street Research downgrading to sell. Not going to pay these fools, but has anyone read the report?
Value matters. Value takes into account, future earning, earning potential, likely hood of FDA approval, partnership deals, buyout potential.
For someone like you, this is beyond your comprehension.
I don't disagree, but I could equally see a rally to over $7.50 by option expiration on April 19, and take out all those shares.
Normally i sell some shares on these rallies to lock in profit. But with this stock I have been selling calls. i just got 40 cents on the April calls, $10 strike price.
This long time investor has used this rally to get off margin (which i expect many people who loaded up in the 4's did). On top of that i sold the April 7.50 calls for .80 on 20% of my position.
You sold early, it hurts, get over it!
I agree it's a strange trade, with the premium so high and the price so low. But, it shows this person is really bullish on the stock above $6.50.
800 contracts for the June 5 calls at the ask yesterday. Someone is bullish. Open interest to that point was less than 300.