Kurt, Sure, open interest in options is a good indicator of sentiment. I don't think 217 is yet a very aggressive position and May is still a long way off.
If one were trading on inside information, it would probably be for an event happening sooner than May. So interest for Dec, Jan or Feb would be high. Also, to make a profit on May 10's, the stock has to rise over 100%. Looks like a $1 profit, or 20% against a $5 stock is pretty good return on selling the call and then of course you'll get another $5 profit if it's called away. I think the seller is doing just fine and probably would be well compensated should GMGC take off.
I do find groups who sell large quantities of options will defend that position and try to move the stock in the last couple days before expiration to negate their position if possible. They to do this by shorting or buying to end a price even on a strike and then unwind that position over the next week. Amazing how often they can do it, even on giant companies like Ford.
When GMGC was trading in the low teens, the options interest was much higher. Since that time, most of the options sold short seem to have been closed. Now open interest is much lower.
I'd say looking at the current table, there's really not much happening. Dec 7.5 open interest is 1627 which would represent an obstical, but I doubt these people think there's much to worry about barring a good news item and then they couldn't defend much against that.
My guess is there won't be much action in GMGC until we get into the new year and tax loss selling is over. Then, we'll have to worry about Congress playing their risky political games.
I think when May comes around, we'll surely know the direction this company will be going and that will be reflected in the price. Perhaps $10 will seem cheap by then. Hope so.
Regards,
Mark
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