Anavex Life Sciences Corp (AVXL)

[raja48185]

It is understandable that a few longs are disappointed with the recent action leading to pessimism. (There was sudden hike in price of close to 300% in 2 days). Some are now hoping that the stock drops to single digit (even to 7 bucks by OE) for the simple reason that they can get back the shares they are going to lose/have lost by selling early.

Many of those following charts and patterns were surprised when AVXL shot past 10,15,20 and finally stopped at 28.xx. Charts do not indicate a drastic shift in pps that too when there is no reason to suspect any pending news or any development, let alone account for the effect of a competitor like SAVA. They were undone by SAVA's meteoric rise that got reflected on AVXL. Those who followed charts and planned strategies like setting stop losses, selling calls, buying puts, etc. got the rug pulled underneath their feet.

Imagine some one selling 50 or 100 calls of $7.5 or $10 strike price for peanuts, before the price surge and now on the verge of losing 5,000 or 10,000 shares for an immediate loss of $$ and potential losses in the future.

We still have 4 trading days before OE and let us see where the pps ends up (single digit or even higher double digit)