Replies to post #126229 on Anavex Life Sciences Corp (AVXL)

[imho]

A lot of people assume this means LPC type companies want to decrease the share price of their clients (toxic financing). I don’t believe that’s the case. Remember they want to sell those shares the next day for more than they paid so they don’t want the share price to decline. They would love to see it increase on that day.

Exactly. That is so obvious, I am surprised people are still wrestling with the LPC affect on the stock price. LPC buys stock from Anavex. That means for LPC to make money, the stock must go up. It is in LPC's best interest. My guess is that, upon LPC purchase of stock, they turn around and sell "covered" calls (out of the money) netting the premium $ and eventually selling the underlying shares at a profit, at a higher AVXL SP.

IMHO

[LakeshoreLeo1953]

Not sure where to begin in commenting upon your thoughts.

ANY straddle implies Up/Down side bias or algorithmic
advantage given pricing of the separate tools.

LPC benefits nothing from retention of "fee" shares
paid in advance for the access to their funding. It is
what they do.....fund.

Any statement of retained interest is backward looking.
Not sure a real time assessment would be any different,
but using those shares to sell prior to buying new shares
under the agreement just is not a plausible strategy.

Long/Short/Stock/Options all have a valid use for ANY investor.
Dismissing any or all is just short sighted. Using them in
ANY combination is personal preference.....hopefully executed from
an informed position.