Biophytis SA (BPTS) Social Stream

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$BPTS Lock-Up Expiration

As the lock-up expiration date nears, traders often anticipate a price drop due to the additional supply of shares that are available to the market. The anticipation of a price drop can result in an increase in short interest as traders short-sell stock into the expiration. Investors that are concerned about the upcoming lock-up expiration may try to collar or hedge their long positions with options.

While stocks tend to sell-off ahead of a lock-up expiration, they don't necessarily continue the selling pressure in all cases. If the pre-expiration sell-off is too dramatic, it can often cause a short squeeze on expiration day as short-sellers look to cover their shares with hopes to lock in profits or cut losses.

A short squeeze is often the case when a trade gets too crowded, and margin interest is exorbitant.

https://www.investopedia.com/terms/i/ipolockup.asp