Avid Bioservices Inc (CDMO)

[investingdog]

To determine the Max Pain influence on share price just before expiration one has to look at the call and put option values.

For PPHM Dec expiration it is:
$0.5 puts - $98,850
$1.0 puts - $27,300
$1.5 puts - $ 8,800

$1.0 calls - $ 6,000
$1.5 calls - $ 71,100
$2.0 calls - $223,850

(data from http://www.optionpain.com/OptionPain/Option-Pain.php )

Max pain is at $1, if PPMH closes at 1.0 option writers make $391,600. If it closes at 1.5 they make $356,000. The difference is negligible, and the value of both puts and calls is very small in comparison with daily volume in Dollars which is about 10 millions based on average volume. Max Pain number will not have any influence on this Friday closing price, the small amount of money in options doesn't justify any extra expenses on MMs part to drive the price to Max Pain point. It will close probably around $1.20 unless we have some news.