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

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To: Jeffry K. Smith who wrote (2558)10/26/2010 11:03:30 PM
From: IRWIN JAMES FRANKEL  Read Replies (2) of 3027
 
>>What I don't get about MNTA is the short interest increase.

You might think of it as similar to covered writing. Rather than being long stock, you can be short the stock. Rather than writing calls against long stock, you write puts against the short.

Or you can write either option (put or call) and delta hedge the movement. The big risk is that the stock moves so fast that the writer cannot hedge out the risk.

ij
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