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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: harmonyss who wrote (4601)	11/21/2006 10:44:58 AM
From: Carl Worth	Respond to of 5205

the problem i see with NFLD is that they have data coming soon regarding the trials of their only product, polyheme if this data is released prior to december expiration, and is negative, the stock could drop 75% risk/reward on a covered call here seems pretty poor IMHO, which is the reason i ran the trade with a long LEAP and short near term call still quite risky, but only for a few bucks, and with lots of time for the trade to work out if it becomes a short term loser, and equal or much greater long term reward potential if the trials are successful JMHO of course

To: harmonyss who wrote (4601)	12/19/2006 6:17:14 PM
From: Carl Worth	Read Replies (1) \| Respond to of 5205

NFLD in the 5's after hours...this is why i played it with a LEAP <g> in reading through the results, it actually sounds to me like the polyheme did pretty well, but apparently the market doesn't agree <g> the good thing is i have until jan 2009 to work on getting back to at least even on the trade, though it was only a risk of 320 bucks, so not exactly a catastrophe i think these pre-trial-results biotechs are best stayed away from, seen a lot of them get killed of late including ONXX, RNVS and NUVO...i actually put a small trade on with RNVS after its "event," think it's a lot safer to play them that way