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Biotech / Medical : Sepracor-Looks very promising

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To: M. Ramle who wrote (1330)10/28/1998 9:32:00 PM
From: Ed Ajootian  Read Replies (2) of 10280
 
Mazen,

Boy, I was proud of myself for figuring out call spreads --- my head is still spinning trying to figure out your put spread!

Not sure how buying the Nov. 55 puts helps you accomplish your goal of wanting to be put the stock @ 60 or below. Why not just sell the 60 puts and stop there?

I've never sold a put (as an originating transaction) because the margin requirements seem prohibitively high for that. Does buying the 55 puts reduce the amount you need for margin to do the trade?
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