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Strategies & Market Trends : Calls and Puts for Income

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To: Jerome who wrote (141)4/9/2007 9:55:03 AM
From: Bridge Player  Read Replies (4) of 5891
 
For the aggressive traders willing to accept risk, I like this play this Monday morning, on Dendreon DNDN, which has just received FDA approval for a cancer drug.

Sell a May 17.5 put for $3.80; sell a May 25 call for $3.40. Net premiums 7.20. Profitable at expiration everywhere between 10.30 and 32.20.

Warning: stock is extremely volatile.
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