Short-termSelling Puts (Covered Calls by another name) Message Board

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Strategies & Market Trends : Short-termSelling Puts (Covered Calls by another name)

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From: Robohogs	1/23/2007 7:11:00 PM
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I have evolved my strategy a bit and am now playing only medium term plays (and specialized ones at that) given my views on market. I have no February plays at all (yet), quite a few Marchs, some Aprils, some mid-summers, some Septembers and quite a bit of Jan 08s. The biggest areas of focus: MNTA puts with the key being to be hedged down to about $12 - have done three different strikes. MNTA covered calls with the same goal of being covered down to $12-13 - short some 17.50 June calls and some deep in the money March's. ARNA puts with key being for strike less proceeds to hedge into high single digits with the biggest chunk hedged to 6.5-7 in case obesity fails. NURO longer term puts with key to breakeven down to $10 and get most losses back with stable price. Company needs time to get reimbursement sorted. RNVS - using $2.50s for Jan 08 and July. Glad to see they think they have over 3 years of cash with stuff moving into clinic next year. Means they should end 2007 with over $2.50 of cash - similar strategy to buying stocks below cash. ENCY - losing on some $5s of intermediate months and $2.50s of longer periods. Hard to see this going below $2 even with non-approval as they do have approvals elsewhere. Key risk is financing. But I have been wrong and sold badly here. ISPH - just waiting for some 2.50 puts of March to go out worthless (too expensive to buy back in size). PANC - rolled my losing strategy out in time with 5s to give time to get drug formulation issues worked out as drug clearly works but formulation issues are key. Jon

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