Replies to post #94807 on Avid Bioservices Inc (CDMO)

[PPHMfan]

I'm thinking the same thing... So this is my first option trade. In this case did you "Buy to Open"? I'm about to place the trade. TIA

[realist1]

RE "Bought 400 Call @5 JAN 2013 Contracts, for 40000 extra shares.
They cost 0.15$ so that only coasted me 6000$.
The MM however has to cover them and buy, which raises the pps."

You've made some very dangerous/erroneous assumptions.
1. A market maker is not always the other person holding the other side of an option trade
2. If the stock closes below $5, your calls expire worthless which means no one is buying any shares to deliver to you.
3. Someone could have sold those calls to you that already owned shares. (they did covered call).
4. The seller of the calls you bought may have already been long the calls and "sold to close" his position.

I think 4 is enough for now.