"Aren't you forgetting about the possibility that NVAX goes much lower? This would increase your cost to roll out the Puts."
I didn't comment about rolling the puts out so maybe you are thinking of someone else?
But anyone shorting puts is obviously aware that NVAX can go lower. It's been in free fall for a month!!!! The person asking the question indicated they had the cash to acquire the shares if exercised but preferred not to and was wondering if they should roll to a further out month strike or take the risk of being exercised. I simply gave my experience having regularly been in the same spot.
In fact , tomorrow I will be exercised on some 125 puts. In anticipation of this I closed several prior high call strike short call positions for a few cents earlier in the week and sold 1/28 strike 120 calls. Still a significant paper loss rolled into that trade for the time being. I had lots of other strike puts and calls expire worthless today as well as shorting 1/28 65 strike puts for next week.
This is probably crazy but I don't consider the FDA news as very important to the short term stock price anymore. NVAX has had positive news since 12/17 and its been sold off on almost every item in "short " order (pardon the pun). It will likely turn back up when risk on trade in biotech comes back. Whether that occurs in a month or quarter or much later in 2022 I'll likely still be a NVAX holder because I like the cash flow outlook and longer term pipeline. I can wait.