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Biotech / Medical : Sepracor-Looks very promising

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To: rkrw who started this subject6/15/2002 11:10:20 AM
From: Rocky9  Read Replies (1) of 10280
 
It looks like someone bought 2000 '05 20 leaps for 2.70 on Friday. If my math is right, that is a $540,000 investment. It will be interesting to follow its success. I was thinking of buying a similar LEAP, but I don't think I can do a similar number. quote.cboe.com

200,000 shares of common would cost "only" ~$2,000,000, so I think that the common would be a much safer way at this point. Also, a more current LEAP or option would have a better return if the price moves soon. This seems like a real bet on the long term health of the company. I will try to run some numbers later to compare returns to owning the common outright. I think that the common must go above 40 to have this really pay off.
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