Zeev re: 'most pain' theory wrt VLNC options.
I rather suspect that's why the individual I heard of exercised his 800 or so contracts for the March 5s. Given the light volume, it might appear the price could be pushed around. But, now the 'target' number of open calls at 5 has reduced significantly due to the exercise, so...
I think the options players are going to have to be satisfied if they can just keep it here at 7, and cause the 7.5s to expire worthless. I suspect THEY would experience a lot of pain if they tried to push the price below 7. There is too much buying support at that level, and it would probably cost them as much as they might gain, to push it down.
Friday could get interesting, though, especially the last half-hour. In the past, acquirers of VLNC have proven savvy at waiting to take advantage as the options players try to drive it down at the end of options expirations. I know I have gotten a few shares that way.
Oh, and Lev is supposed to be back from a long trip this week. If there is any positive news release, there could be upward pressure on the stock, and the battle could be waged higher than here, not lower. Food for thought. |
