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Biotech / Medical : Vivus, Why the Slide?

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To: Rubble who wrote (3605)9/18/1997 10:35:00 PM
From: Don Dunlap   of 3991
 
Rubble, (off topic) I bought FDX at 66. Today close at 78 7/8. April 80 puts cost 6 3/4. So, I would pay 675 plus commision per contract right?

This seems a lot to pay. The stock would need to go up $7 for me to break even. If the stock dropped to $72, I would still be no worse off if I passed on the options and sold the stock outright.

It seems that I would pay an awful lot (more than 1/2 my profit) to eliminate the risk that the stock would drop below $72 through April. I know am ignoring any value of the options at April.

Would you agree with this?

If you like, we can take the conversation offine via email or back to the Fedex thread you started.

Any advice appreciated.
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