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Biotech / Medical : Momenta Pharmaceuticals Inc.
MNTA 52.480.0%Oct 2 5:00 PM EST

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To: DewDiligence_on_SI who wrote (2542)10/26/2010 8:52:56 PM
From: Jeffry K. Smith  Read Replies (1) of 3027
 
...Selling covered calls, which some posters have reported doing from time to time, strikes me as especially unwise in the case of MNTA.
I wouldn't call it unwise... If the stock goes up, the covered call seller will not share in the gains he could have had, but if the stock goes down, he's got a little bit of "income" to cushion the fall.

I think it all depends on what one's angle is - getting paid for holding a position (covered calls), buying and holding the stock, or buying an option as speculation.

What I don't get about MNTA is the short interest increase. A short is a naked call! Seemingly, one must be awfully comfortable, rich, or clueless to short MNTA... OR maybe they know something we don't!

A penny for your thoughts.
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