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Biotech / Medical : Biotech Valuation
CRSP 53.54-3.1%Nov 18 3:59 PM EST

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To: Biomaven who wrote (13375)10/7/2004 11:49:04 AM
From: Sam Citron  Read Replies (1) of 52153
 
buy/write ... roughly equivalent to simply writing a put at the same strike as the call

I don't see much similarity. With a buy write your risk is limited. With a short strangle, you have limited reward and unlimited risk.

Today I naked shorted CTIC March 5 put on the "limited downside" theory. My risk is that I buy a slug of stock at $3.50 in the case of a Stellar 3 disappointment.

Sam
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