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Biotech / Medical : Theragenics (TGX) on the up and up

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To: Solid who wrote (778)3/29/1998 9:37:00 PM
From: Ron Kline   of 1055
 
I'm not sure what the options you are interested in are trading for but I would think they have lots of premium built in. I think the July 70's were something like 6 or 7 dollars. That means the stock needs to cross $77 just to break even at expiration. I think if you own the stock and it moves up into the 70's I think that you can make good money selling the calls a couple of months out. you will get a rich premium and if THRX does take a breather you can hold the shares and pocket the premium. To speculate on the call side might make you money but it seems to me that your risk is not worth the reward. But then I'm one to stay away from options anyway so I may be a little conservative in my thinking.
Ron
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