Immunomedics (IMMU) - moderated Message Board

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Biotech / Medical : Immunomedics (IMMU) - moderated

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To: me otter who wrote (7774)	10/6/2009 10:11:31 PM
From: li3511	Read Replies (4) of 63324

> my plan is to start adding in the low $4 range Really? Then here's a plan... At your first opportunity, sell (to open) QUI-WA (Nov 2009 5 Puts) @ 0.85 (or whatever your price might be) or QUI-MA (Jan 2010 5 Puts) @ 1.25. If... 1) ...the price goes back up over 5, meaning it never hits the low $4's, you get to keep the premium. You would make money without having put any up. 2) ...the price stays below 5, but above the low 4's, you get your price even though the market didn't get there. 3) ...the price goes below 4, you get what you say you wanted and would do anyway. Note: Writing a naked put is almost equivalent to doing a buy/write (buying the stock and selling covered calls) in that the eventual outcome (ending up with stock or cash) is the same. However, the put (1) gives you a slightly better price, (2) doesn't require you to tie up capital in the stock in the near term, (3) requires sufficient cash or margin headroom in your account to convince your broker that you COULD buy the stock if your options are assigned. By the way, I have done this myself. Think about it -- who among you would be willing to commit today to buying IMMU at 3.75 next January regardless of its market price next January? And by 3.75 I mean 5 next January, less 1.25 received now, which you get to keep no matter what.

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