Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sam Citron who wrote (13346)	10/6/2004 2:25:17 PM
From: tom pope	Read Replies (1) \| Respond to of 52153

Sam, I think he was talking about naked writing, not covered writing

To: Sam Citron who wrote (13346)	10/6/2004 3:01:51 PM
From: Rocky9	Read Replies (3) \| Respond to of 52153

I would be more interested in understanding the actual downside of the cc write strategy that I am proposing. I think that the downside is clearly in the underlying stock price. My experience with "bad news" is that the stock goes down far more than you think that it should. So I think that you assumption of "a stagnant stock price" is probably misplaced. It will either go way up, or down alot. If the news is delayed, it would be the best result for the option. I am looking closely at the proposed buy and write. If I can get comfortable that the downside risk is at least 50% covered by the option premium, I will probably do it. Thanx for sharing.