Agouron Pharmaceuticals (AGPH) Message Board

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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: Joe E. who wrote (2578)	10/31/1997 11:52:00 AM
From: Randy Schmid	Read Replies (1) of 6136

Hi Joe - no offense taken at all - the idea to always open a spread is one I intend to follow a lot more closely in the future. What I was looking for with the 55s was continued upside momentum, so I could sell a higher strike against it and get even more money (say GREED! and smile...). AGPH stock turned south about the day after I bought the 55s. I had seen my Nov. 47.5 calls go to double their value, then retreat to about 2/3 of their value. I'd also sold (twice) covered calls against these calls and actually managed breakeven (almost) by doing so. With options further out, you can often afford to wait for a few weeks months before the time value decay sets in significantly, so that's been my play so far. I suppose on reflection you could always buy back the sold call at slightly higher premium and let the owned call run. With my luck, I'd do that and the stock would reverse its trend! Thanks for the thoughts - would welcome more. Regards, Randy

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