I don't think it is a hedge. I can see this a being one to two things:
1) He wants to own more then 10% of the company (currently has 9.9% in stock), and is using options to accomplish this.
2) The sellers of the options calls do not want to sell the shares yet (tax issues?). They get some money now, but with no tax obligations until 2015.
Of course, I can be completely wrong.
The way I am reading the transaction is he essentially bought the 6.2M of shares, paying around 6.80 now and 12.30 in 2015. If the stock is above 12.30 in 2015, he gets the stock via the call options, if it is below 12.30, he gets the stock via the put options, paying 12.30 either way.
Looks like this is the last post on this thread. The record stops at 12 days (45 minutes left with only 220K shares traded, ain't going to make it today). It will be interesting to see if this things holds 5 longer term.
With 1M+ shares on Thursday and 600K+ shares traded today, that's 10 days in a row of 500K+ volume. Typically this is a stock that trades between 100-200K shares a day. I wonder where or to whom the shares are going.to.
Day 8 of 500K+ volume, should easily it 1M+ shares today. Don't know what is driving this, just enjoying the ride.
I'm not smart enough to sell :) Holding out for boom or bust. Actually, If we get to 8, I will probably start thining out my positions.
I expected the buying to stop last friday after earnings, put the volume keeps chugging along. Still hitting 500K+ volume per day when you would expect a little over 100K. Is it because of the potential partnering of PSMA ADC next year?