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Biotech / Medical : Biotech Derivatives

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To: scaram(o)uche who wrote (12)	2/25/1999 10:40:00 AM
From: Biomaven	Read Replies (1) of 555

I've looked at this strategy many times in the context of some significant known upcoming event (like an AC meeting). I've always ended up rejecting it because the premiums were just too high. This strategy can work (like it has for Rick) if there's a significant upcoming event that the rest of the world doesn't know about yet or hasn't reacted to yet <G>. My other big concern with fancy options strategies is that you get eaten up by the spread. It's bad enough paying for one spread, but for a combo where you have to pay for 2 spreads on entering the position and potentially another 2 on exiting, it's pretty tough to come out ahead. Peter

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