It controls your downside risk until such time as favourable...

It controls your downside risk until such time as favourable conditions exist.

Let's say a Fund wants to take a position. They like the long term potential of NEU but don't see any reason for a significant re-rate in the near term (or are worried about sector or poor market conditions being a drag on the stock). Looking at NEU price leading up to and post announcing it's Ph3 start for trof provides a good reference point for this. But the fund also doesn't want to try and build a position when everyone is clamouring for the stock in 2 years time either. So they build a position and hedge their downside risk because lord knows you don't want to be holding too many positions in your fund that are down 50%. Won't have much FUM left if that keeps happening. Fund managers try and smooth out volatility and risk and 'hedging' of long positions is one way to do that.

I think we can all agree that the majority of returns to be made in NEU in the next 2 years will be post Ph 3 results, presuming they are good. I can't see us re-rating above $30 on Daybue results results alone, not in the next 2 years anyway, unless Acadia smash it out of the park.