That's one way to do it. If they are covered calls, they could sell some of their shares to force the price down, and buy back if they want to maintain a long position. They can always sell short too. Cash flow is not the issue here, options expiring out of the money is.
I would guess that a large percentage of call writers are writing from a covered position, but write out of the money calls looking for a worthless expiration versus scalping a percentage. They want to keep their stock, and keep the premium. As the old saying goes, it takes big bucks to make big bucks.
However, there are folks on this thread far more knowledgable that I about this issue. I was only trying to make the point that there are reasons why USRX stock moves the way that it does in short term cycles. This has been a traders' stock for a couple of years now, and is really nothing new.
By the way, they don't always get their way. There are plenty of other "forces" at work. |
