re: AUPH - Aurinia Pharmaceuticals

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So are we now in a "no buy" zone?

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Under $18 but buy and buy some more

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GAFF: Honestly I’m selling if it gets back to $18 (which it probably fricking wont). I’m kicking myself for not selling when it was at $20. I did this same shite last time it jumped and bled back out. Great company but I have too much tied up in it that I could put into other prospects in the short term. I’ve missed out on over 20k by not selling the highs on the past two pops alone. That’s not counting the possibilities of other profits that I traded in with lower capital. Great company but for whatever reason can’t hold its share price. If buyout talks heat up (which it probably will when I pull out) I’ll jump back in. Just fricking sucks when I think what SHOULD have been.

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RedStickBR: Why not sell $18 calls against your underlying right now? That way, if it goes to $18 or above, you get your price target and some additional premium, but if it goes back down, you at least collect some premium. The calls on this one have a nice premium right now. You can collect nearly a buck on the $20s.

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GAFF: I have no idea how calls work. Every time I think I have them figured out I get burned

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Think about it this way:

Assume that you paid $400 for the last available Alabama football ticket because you think you will be able to turn around and sell it for $500. Moreover, despite how much you'd love to watch your gumps play football, you'd sell the ticket no matter what if you could get $500 for it.

Now, assume Bubba would happily pay you $700 for the ticket because he believes he could turn around and sell it to Billy Bob for at least $800. Despite Bubba's belief, you really only think the ticket is worth $500 and thus wouldn't be willing to hold out for $800 yourself.

In this situation, Bubba might approach you and say, "Hey, GAFF, you think the ticket is worth $500 and I think it's worth at least $800, so here's a deal for you: How about I pay you $700 for the ticket now?"

In this situation, you may be thinking, "Wow, what a great deal. Bubba is willing to pay me $200 more for the ticket than what I think it's worth."

And Bubba, for his part, may be thinking, "Wow, what a great deal. GAFF is willing to sell me the ticket for at least $100 less than what I think it's worth."

By selling the ticket you bought for $400 for $700, you're locking in both (a) the $100 of profit you expected to make no matter what and (b) an additional $200 in premium over and above that profit on account of the fact that Bubba thinks it's worth even more.

While not a perfect analogy, if you understand the above, you basically understand the value of selling a covered call option with a strike price equal to your target price. By not selling the call option, you're limiting yourself only to the profit you expect to make anyway (intrinsic value to yourself). By selling the call option, you're also monetizing the potential for the stock to be worth even more (extrinsic value to someone else), even though you yourself wouldn't be willing to hold out for that much higher price.

The one difference, in your case, is that you're not actually parting with the stock when you sell the option, which means that if the stock drops back down to where it was prior to the recent spike, you're still better off because you've now also collected an option premium for it.

As general info, it only really started to gain steam on the fourth day after P3 data.

Can anyone shine some light on Iljin Holdings and AUPH? I know they owned a lot of shares but people are saying they sold over a million shares right before the FDA decision. What’s this all about?

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Can anyone shine some light on Iljin Holdings and AUPH? I know they owned a lot of shares but people are saying they sold over a million shares right before the FDA decision. What’s this all about?

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Trying to find out...

here's the filing

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So they sold thousands of shares everyday during the week of FDA decision for a total ~850k shares? I’m out of my league here so how does this affect the stock price that week and why sale that many shares before a 90% sure approval?

AVG volume is ~8 million. What’s the big deal about a holding selling ~100k a day?

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In theory this would help to level s stock as I said pre conference call, a 1 drug biotech is super risky especially if you don't know when you're gonna get paid back.

Word is, since they didn’t get their way in summer of 2019 they are doing what they can to damage the company.

Their selling is strategic, and we definitely saw it happen in the fall of 2019.

Several times it looked like the price would pop above $15 pre approval, but apparently they’d walk it back down each time.

They might have done the same thing yesterday and today. Someone DID sell 660k shares today alone. I bet it was them. Highly likely.

Spiteful bitches.

I got back in. Read article they got price target of 28

Soo basically this stock is “shite” until they stop being spiteful? Or is there some other workaround?