Sepracor-Looks very promising Message Board

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Biotech / Medical : Sepracor-Looks very promising

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To: Jill who wrote (1930)	3/5/1999 8:41:00 AM
From: Biomaven	Read Replies (1) of 10280

Jill, Selling puts is essentially equivalent to writing covered calls - something most people are familiar with. Thus in both scenarios if there is a significant stock decline you will end up owning the stock at a loss, and you have limited upside even if the stock soars. You will do well if the stock stand still, or moderately increases, and you have protection against moderate declines. It isn't a crazy strategy for SEPR, particularly when premiums are high and you go to a distant contract. It works best in stocks in which you anticipate a slow but steady increase. Peter

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