Replies to post #36590 on Humanigen Inc (HGENQ)

[10nisman]

A ton of puts were sold the last 2 weeks. Whoever sold the puts will have a lot of incentive to get the share price as close to $2.50 as possible. July options expire on July 15th. As a smallcap biotech, HGEN is an easily manipulatable stock as evidenced by last week's action. That manipulation should reverse and benefit us over the next 2 weeks.

Thanks DonDon. You're trying very hard to win the Top Post of Year award. You definitely get an "A" for effort.

I love when "investors" think they understand the options market. First, one needs to understand for every HGEN option sold there is a buyer of that option who has incentives that are the exact opposite of the seller. The fact you think the sellers of the $2.50 puts who sold them for $1.00 and thus, have a potential basis in shares at $1.50 need the price to move to $2.50 by July 15th is comical. On the other hand, the put buyers, have every incentive to get the price as low as possible given they need HGEN under $1.50 to make any money. One can argue a put buyer might be hedging a long position, however, nobody hedges downside risk on a stock trading at $1.60.

You're also talking about very puny total dollars at risk in these option trades.