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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: KELLIS who wrote (1873)4/25/1997 9:57:00 AM
From: sailor   of 14162
 
Kellis

Having worked for and traded in companies seeking FDA approval-it is a double edged sword. Sometimes companies are so sure they are going to be approved they spend tons of money on equipment, tooling, even hiring people only to find out the FDA did NOT approve. I have seen stock in companies like this drop to 15% of value (I know the hard way). I only trade with companies who have multiple FDA projects all in final stages of approval. (Usually larger companies) Made about 4K in '97 in such companies-none have gotten FDA approval yet.
CEPH may be a better company to buy and sell options on. Hate to see you end up with a few thousand shares of stock worth only 25% what you paid for them.
Jim
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