Galectin Therapeutics Inc. (GALT)

[thefamilyman]

I just took a look at the option situation for GALT. The last day of trading for April options is the 18th. There are about 5600 April call options out for GALT representing 560,000 shares. I have noticed that on that last day of options trading, more often than not a company's stock price will end up near the price that makes the "market makers" the most money.

In this case, the stock would have to close at about $10 on April the 18th. I think that is highly unlikely, but it would be in the interest of the market makers to keep GALT's price under control. Every dollar that the closing price on the 18th is above the $20 strike price is over a $500,000 loss to the April option writers.

Through October, there are call options out representing almost 900,000 shares. Right now, the highest strike price each month is $30.

I'm not trying to be negative, just keeping it real. I am a believer that we have something special here. But there are forces out there that will be pulling against us. Hopefully, the news is so good that it creates a high demand for our stock that overcomes the ability of the market makers to manipulate the price to any significant degree.

I have been told, although I have no personal knowledge that it's true, that market makers will sometimes create the kind of price action we saw yesterday to give them an opportunity to hedge their positions against potential good news. And in fact I have, multiple times, witnessed the kind of price action we saw yesterday occur in advance of expected news for many stocks.

GLTAL