Humanigen Inc (HGENQ)

[Corundum]

Not likely. With a potential buyout lurking around, there is too much risk on those sold puts. Who would want to "break even" at a $100 a share buyout price, when you can buy a really cheap call as insurance? Let's see: 200,000 shares times $70 a share missed out on = $14 million vs. 2,000 call contracts equals 200,000 X $1.36 = $272,000.

It wouldn't even have to be a buyout. A big BARDA purchase order at the time of the EUA (before June expiration) could drive this stock towards $100.

Most of us think this would be a screaming buy at $50 with just an EUA in hand. Those calls would still be a really cheap insurance policy against those puts.