VVUS: VIVUS INC. (NASDAQ) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Neil_L who wrote (646)	10/6/1997 7:56:00 PM
From: Brian Malloy	of 23519

I don't know at what prices you are in these positions. I would assume that the 30's were purchased early and are deep in the money. The 40's may be more recent. Today VVUS up 1 1/16 to $40 9/16 Option...OCT 30-(VVQJF).....OCT 40-(VVQJH) Net......+1 5/8.............+ 13/16 Ask......$11 1/8............$3 It would appear that the Oct 30's are basically trading with the underlying stock. There is very little time premium. Oct 30 Intrinsic Value-IV: (40 9/16-30=$10 9/16) Time Value-TV: (11 2/16 -10 9/16=9/16) on the other hand you can see\do the math that the Oct 40 has IV of 9/16 and TV of $2 7/16 Based on this I would be inclined to get out of the October 40's first. Between now and next Friday $2 7/16 in value will be lost. On the other hand only 50 cents will be lost on the Oct 30's. Rest assured that with expiration being rather close the MM's are going to be taking back that time premium big time. If people hold the Oct 40's they need VVUS to keep moving up just to stay even at $3. As an example, if VVUS goes up to $43 by next friday then Oct $40 is still worth $3 (a gain of 0) but Oct $30 goes up $1 7/8 to $13 (a gain of somewhat more than 15%) from current levels. So based on how much you paid for the options and where you expect VVUS to end up you can kind of use this as a template to role play what might be best for your individual situation. Also, visit cboe.com you have to look around but I think they have an on line options calculator that you can play with to do what if scenarios. There are also sites that have similar things as well. Best of luck to us all. Keep your eyes sharp and your powder dry!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next