Hey Tuck,
It's been one of those weeks. So terrible that by Friday, the thread is quiet all day. People just want to forget about the week. As if Monday was not bad enough, today CTIC was the worst performing stock (-10.87%) in the worst performing industry group (biotech -1.27%). And that was without any new news!
I have one of the more convoluted hedge positions I've ever found myself with on any stock: short March and June 10 calls, short March and June 5 puts, and short the common. Until Monday, I was long. Went from net long to net short in the frenzy of Monday's premarket, as I figured they never bottom in a day.
When I sold the puts and calls a few months ago, I couldn't believe the market's generosity. I felt that I would be lucky if I got the chance to acquire the stock at these levels ($5-$1.50 premium received). Then on Monday morning, when I tallied up how much stock I would soon be swallowing, I decided to hedge and go short the common to even things out a bit.
I've always had an aversion to biotech due to my lack of bio or medical knowledge. But I was seduced by the high implied volatility, and now I'm learning what binary risk is all about. The class is kind of fun, so I really don't mind paying some tuition. Maybe I'll even learn a little about biotech.
Sam |
