Hern & other, great thread! I have been reading for a while
and would like your thoughts on the following: I have established
two similar positions in GENZL, the first about a year ago
at 9.5, i have written several covered calls and have lowered
my nut to 7.13, I just opened a similar position at 7.18 and
sold the july 7.5's lowing my nut on this to 6.65.
The stock price has now dropped and trading in the 6.3-6.5
range, with what looks like a downward trend, negating the
gains I have made with my premiums.
My questions are ,is this a good stock to write calls on?
( GENZL is a small bio-tech company, no earnings, high burn
rate, another offering coming, diluting value, downward trend-
However, it is affiliated with GENZ, which lends some stability
, it's carticle product seems to be doing well and it has
some other promising products in its pipeline. I would not mind
holding long term.)
Also, i have a June 7.5 call on position and July 7.5 on the
other, what would you recommend, writing another 7.5 or 5 and
how far out? Can i write option on this if it goes below 5?
Thanks!
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