Avid Bioservices Inc (CDMO)

[tech0200]

I wasn't aware of the located trick. They seem to always find a new way to game the system. The same shares then can shorted many times over without being borrowed. How is that different than naked shorting.

There are 20,000 2.50 puts. They should have cost around $200,000. It has to be somebody with deep pockets with bad intent. Maybe it's somebody who sold the puts to themselves to get people to think that the stock could drop below 2.50 so they could sell and then the put trader can buy them cheaper. That would be a creative plan to try to get cheap shares. If you think about it, if you wanted to buy a lot of shares you would want to the price to drop before you buy. This is a good scenario. Or maybe it's some body who has the ability to knock the price down below 2.50 so that he can make money on the 2.50 puts. This is a bad scenario for us. If the latter is the case we can expect what happened two days ago to happen again. And they may just be shorting the stock without even borrowing.