Volunteer,
Last week the cc's I had written were back down to what I paid for them so I could have bought them back and probably just lost commissions. I did not, because I feel that I am satisfied with the profit I would get if I were to be called at 30 (sorry that at this point I can't give you what my exact cost is, but it is below 24).
The key to the decision lies on what the cost is for your shares and if you are happy with the profit you will make if called at $30.
Added to this you should consider several factors that seem to indicate we may all be able to buy these calls back a lot cheaper (although there is never a guarantee):
a) there have been no indications that VVUS is no longer restrained in its capacity to put out product;
b) VVUS has been about to run through 30 resistance several times since we established a position in it right after the split, and has never made it;
c) with a 250+ gain in the DOW today, VVUS had a good gain, but it wasn't impressive;
d) if the post on VVUS's ad campaign is true, I'm confused as to what is happening, supposedly they have a hard time keeping up with the demand, therefore, any advertising would be throwing money out; and,
e) their last quarter earnings were way above expectations and it did not push the stock and maintain it above a $30 price.
The decision is yours, and depends on many factors specific to your situation (your nut, what profit you are satified with, other uses you have for your investment money, etc.) |
