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Biotech / Medical : Immunex

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To: Bob Swift who wrote (139)11/21/1997 2:12:00 PM
From: broken_cookie  Read Replies (2) of 656
 
Bob,

If you fear that IMNX may fall to 42 .. 36 .. 29 .. 20, etc, why dont you buy some protective puts to hedge risk.

For instance, you own 500 shares with a cost basis of 60/sh.

Stock drops to 40, you're out 10,000.

Buy 5 march 50 puts @ 2 1/2 for 1250.

Stock goes to 40, puts worth ~ 11, you're out 5250.
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