Avid Bioservices Inc (CDMO)

[eastcoastguy]

I am very long PPHM but not very optimistic about the market in general. To deal with those two opposing positions I keep some powder dry for PPHM when its on sale. My last buys were low 1.60's a few months ago and I haven't pulled the trigger yet on additional buys.

I prefer to buy when the market is down sharply and PPHM is caught in the downdraft. Because I think the market is at least in line for a correction I have Jan. call options that are short the S&P500. It's kind of like paying an insurance premium. I'm so long PPHM that if the market advances and PPHM more so I will consider it an insurance premium not used. Maybe an expensive premium but I sleep better having it.

If the markets crack or corrects the short calls go up, PPHM probably goes down with the market but selling the calls gives me more powder for PPHM.

Now the worst case for me is the market keeps marching forward, the calls are worthless and while the market advances our very own PPHM falters. Now I don't think that is likely but that's what makes a market....we all have an opinion.

rock on PPHM