Avid Bioservices Inc (CDMO)

[Protector]

KT, They don't let it come to far. The 5 to 10 cent swings PPHM makes are more then sufficient for MM to gradually close the gap. It is not so that there isn't ANY Ask volume at all.

The MMs don't pay commission, but the party at the other end does. They can hedge if the volume is to large (and on big transactions they do).

BTW, the bulk of that Short Interest came into existence over time. Part, certainly after Jan 7th move, way higher then the 2$ range (we touched 2.68$). The 1.70$ dip from two weeks ago was an opportunity to cover or hedge (with options JUL).

We always assume that the options are Ayer's. I will not discuss that for those in April, but since they showed up for JUL too I'dd say they are MM hedges. They anticipate having to short lots of shares (by MMs) above 2.5$ and above 5$ and hence want the right to buy at 2.5$ and 5$ to fill while the pps will be way higher. So they can short at ANY price above 2.5/5$ for the related volume.