Biotech Valuation Message Board

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Biotech / Medical : Biotech Valuation

CRSP 53.43

+1.7%

11:24 AM EST

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To: Sam Citron who wrote (13346)	10/6/2004 3:01:51 PM
From: Rocky9	Read Replies (3) of 52153

I would be more interested in understanding the actual downside of the cc write strategy that I am proposing. I think that the downside is clearly in the underlying stock price. My experience with "bad news" is that the stock goes down far more than you think that it should. So I think that you assumption of "a stagnant stock price" is probably misplaced. It will either go way up, or down alot. If the news is delayed, it would be the best result for the option. I am looking closely at the proposed buy and write. If I can get comfortable that the downside risk is at least 50% covered by the option premium, I will probably do it. Thanx for sharing.

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