Replies to post #5189 on Aurinia Pharmaceuticals Inc (AUPH)

[nsomniyak]

I assume you mean on AUPH - no, I did not loan any of them, yet (or at least not currently, I have had AUPH shares out on load at various points in time. At 7% the rate is too low. I can make a better annualized rate writing out of the money calls against my shares (especially if I sell those calls on up days for AUPH). There is some risk of the stock getting called, but not that much when writing September 7.50s or 10s. If the stock were to pop, I can always roll those calls forward and up, almost always in a cash flow positive transaction.

I see AUPH as a long term hold and am not too worried about a huge spike before mid-September.

[nsomniyak]

The securities lending program is interesting from many perspectives, one of which is that it allows biotech investors to garner income from their holdings, which almost never pay an actual dividend.

This changes the equation - biotech investors are generally not looking for income. It takes a while to get used to factoring it into one's decisions.

It takes less time to adapt when the rate is 40% than when it is 7%.