Tsk...tsk...Mighty, sounds like capitulation to me. Good luck to you though, but I think you may end up regretting it.
Believe it or not, I find these retrenchments healthy for the stock. They purge out some weak players, and some of the takeover premium. We're firming up a base that is higher each time, and, given what was essentially an excellent earnings report (if misconstrued), I would not count on another retrenchment next time we approach 50. The market is never that easy, and just when you think you've got it figured out, that's when they change the rules.
What's that theory about the market maximizing pain? With all the heightened interest in short activity across the board, do you really think the market is continuing downward? I don't see anything in ASND to drive the price significantly lower. Selloff/shorting yesterday, plus Bell Atlantic news today, plus reconsideration of their impressive quarterly performance will bode well for a steadier upward run, or at least a market beating run.
Personally, I prefer long puts for downside protection. Covered calls also offer a limited amount. With ASND, however, I'm currently using neither. I consider the downside risk relatively small, now. But I consider the upside quite significant, even without renewed buyout speculation. |
