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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Rocky9 who wrote (10550)	2/20/2004 5:21:41 PM
From: jayhawk969	Respond to of 52153

I have been buying SEPR March 25 puts. They are very expensive, but I don't want to wake up Friday or Monday morning and see the stock at 12-15 like last time. Plus I want to keep the upside, with I think could be very large. Given this boards analysis (thanks Bio and Peter); if they are correct about pricing vs. risk I am very tempted to convert my current SEPR holdings to a less risky play. I have no capital gains to concern myself with so I would sell the Jan 05 calls @25 for ~$8. This gives me a significant portion of the downside protection I need, and I see two ways out if all news is favorable. I can then substitute the SEPR with call attached for part of my bond portfolio for an nice 11 mont gain, and repurchase SEPR in the market post 3.29. Or I could likely trade the '05 options for a higher strike '06 option without too much damage. If Monday through Wednesday follows last months option' expiration we could see $30 Monday - Wednesday and I will pull the trigger.