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

To: tom pope who wrote (13328)	10/6/2004 2:29:30 AM
From: Sam Citron	Read Replies (3) \| Respond to of 52153

Tom, How did you obtain or derive these implied volatility figures and how might such figures be useful to a speculator or investor? I have never been a disciplined or serious options player, but have simply employed covered call writing strategies when it seemed to me that premiums were excessive and upside was somewhat limited. When I see a premium like this, it suggests to me that perhaps I should be buying more stock and selling more covered calls. As I have stated before, I consider the current market as a whole to be rather uninspiring, and so I view opportunities like this, where one can make 20% in under 6 months in a stagnant stock to be quite attractive. High implied volatility naturally implies high downside risk as well, and I wonder about the possibility of using other options strategies to hedge such risk. One problem is that I am a cheapskate who hates to pay for time premium. Sam