Funny, I quietly took a little position in KERX at about a buck higher via sold puts. Odds look really good I'll be keeping the premium. I've been on a minor buying (put selling) frenzy of late, but have hedged a lot of core stuff. Another oil rig-threatening hurricane should put the market in at least a two day correction, methinks. At which point I'll be deploying a large chunk of buying power. I think we get strong seasonality for the next couple of years, during a mild secular bear, such that the seasonal rallies are short lived. Heck, this year we didn't even get an anticipatory run-up to ASCO. You could have sold everything in March and gone fishing till August. I think this pattern will hold for a while before we get another 2003.
Anyway, I've been in sold MEDX puts for a few months now, patiently rolling 'em out each expiration week. Finally, it looks as though they will expire worthless this month.
In general, the miniportfolio has a lot of stuff I "have", but I sold puts in all cases, and only with MEDX do I have a lower cost basis than the miniportfolio. Good timing on the seasonality, there, Dude!
You'll tell us when you sell?
Cheers, Tuck |
