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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Hepps who wrote (4903)	4/15/2007 4:10:58 PM
From: Mike Buckley	of 5205

Just to be clear, as I understand drug stocks waiting for approval, if there is a definitive answer and it goes to 8... or 6... or 4... the next round of calls might only go for 10 or 20 cents. I don't follow biotech stocks as a sector so I don't know the market's typical reaction to such a scenario. However, it does make sense that that is how the options would be priced in that particular scenario. --Mike Buckley

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