Replies to post #32817 on NorthWest Biotherapeutics Inc (NWBO)

[Dan88]

I am not an expert either, but have traded options for years. My understanding is that this situation usually happens when there is not a high volume.

IMHO, because of this unusually low premium (almost with no time values for almost two years of time), it is a real bargain for buyers of these leap calls. Of course if you don't believe the success of either L or D, then don't buy any leap calls. In addition, time values are relatively insignificant for in the money leap calls compared to out of money calls!

I have lots of leap call options at strikes $3, and $7 along with a very large number of shares.

Nonetheless, things can change very quickly, making leap options very expensive.

The last I want to say is that compared to the manipulation of shares, option manipulation is more rampant!

[mapman1010]

Am I the "sucker" at the card table?

i am baffled as well and i am a Texas Holdem player so I have asked myself the same question . my Jan '17 $5 calls that initiated when i rolled over April 4s and 5s at a share price of 8.50 currently have a paper gain (not counting my gain on those 4s and 5s) so i can only speculate that the price of the calls will revert to the mean for a high beta stock such as NWBO.

in the mean time i will keep adding to my large position in these calls because i believe if nothing else happens with 'Direct' 'L' will have a positive effect on SP before these calls expire.

[joeycav11]

Rrrichmond one reason the 5 calls are selling at 350 is the seller could use the 3.50 you give him to buy a share of stock. Hedge funds are offered more margin than retail. They may only have to come up with 33% of the stock price to purchase a share....Thus the cost of a share to them is roughly 2.75 ...leaving them excess liquidity and and a share to short or keep as a hedge

[TZOR]

They are cheap options. I own some July $8 calls (.95 bid, at $1.15-$1.25). They represent roughly .70-.90 of extrinsic value. You jan 17 $5 call at $3.60 represent roughly .50 of extrinsic value (cheap). Extraordinarily cheap given the time available to move the stock price (think of the game plinco on price is right, with more time comes more available price swings, comes more extrinsic value associated with the aforementioned price swings). The only thing I can think of is that someone selling those options is not pricing them properly and wants out. I would assume that there is not much volume for the price you mentioned. Any large player would arbitrage the premiums for a hedge and get paid for their insurance. I think the fool is the seller. The reason why is based on the market of other options trading on the same underlying instrument NWBO

[obuhz]

1. Deep in the money options tend to have little premium if any. I recall one month earlier there's a premium of less than 10 cents. Now 28 cents? Good.

2. Shorts who fail to borrow shares or can't afford interests sell calls as a means to short. This way they collect premiums (in this case .28) instead of paying someone else put premiums ($1.95).

3. When you think of it, you will also understand this kind of low premium options actually attract stock owners to sell their stocks and roll into the options, effectively helping shorts gain access to hard-to-borrow shares.

4. Most option traders employ complex strategies which make it hard to understand their strategies... The one who sold your options could be run-of-the-mill computer programs who never understand catalysts before us.

5. NWBOW has a much higher premium which expires 11 months later. Unless there is a too complex and laser acute conspiracy against Jan 2017 call buyers while sparing NWBOW holders, I attribute this phenomenon to computer strategy and inefficient market. And the discrepancy between NWBOW and Jan 2017 calls? I attribute it to shorts.