Avid Bioservices Inc (CDMO)

[investingdog]

EYEBUY, still buying March calls?

I thought I was done selling covered calls but changed my mine yesterday after the news and sold $2 March on 30% of my position and considering selling some April calls as well.

Partnership may not happen till after the final results of the first line lung trials are out. The second line results don't look as good now as they did in September, so BP will probably wait or offer less lucrative deal. Another 3 months delay before any new important announcement is not only possible, it is probable.

The volume is pathetic today, no buyers, and MMs can churn and drive PPHM wherever they want to. It would not be surprising to see SP go down to 1.5 level within next couple of weeks barring partnership announcement. That would present a buying opportunity.

Market is high and if the sequestor hits it will take everything down, especially high beta stocks. Precious metals got hit hard - it defies the logic given real loose monetary policies all over the world and huge debt levels. We might have a few really ugly weeks in front of us.