I look at options on a regular basis, but I haven't traded ANTC options as yet. I did think about selling calls, but never did as the premiums were too low (a buyer's market).
It seems like the price is not too great for the Feb 15's, but then it isn't all that cheap either. I see 2 1/4 to 2 5/8 which would mean you won't be in the money until 17 5/8.
Some schools of thought would say never pay more than 1/2 for an option, but I think that's a little hard. Still, I would think it hard to do better than double your money and a good chance of getting nothing. Options are less tangible than stocks, so they generally require a greater reward to risk. It's good to have a 4 to even 10 times reward potential.
I would also look for a relation to an earnings report. It gives added value when the option exipres a few days before a report. You'll also do better when you plan to trade your options before expiration. So, if you buy a Feb, you'll still get a good premium if you sell it in December. If you wait to Feb, you had better be in the money, or you won't have much speculative value to trade.
In the end, what do you think is the upside? I would wait for the price to pull back. I think the market is still a little dangerous. The news of Microsoft and TCI was interesting, but these little bits haven't had a long term impact. Prices seem to pop up for a few days and then retreat. The fact that the CEO is saying the stock is cheap is good. For me, it is unclear.
They should open a December Option soon. I'll look there to sell a call if the price is good.
Regards,
Mark
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