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Biotech / Medical : Sepracor-Looks very promising
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To: Robohogs who wrote (10084)5/19/2007 2:48:24 AM
From: John Metcalf   of 10280
 
"Synthetically same as buying stock, correct?"

Yes, it's like buying stock at a discount. The idea is to leverage the long position with the proceeds from selling the puts. It's not a big deal to me, even if the stock goes to zero, and there's lots of time to create salvage positions. OTOH, the maximum gain is not that large either.

What I really expect is that rational analysis will follow in just a few days, bailing me out of the sold put, and I get to keep the money, so the held call is very cheap.
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