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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: SI Bob who wrote (29367)	12/22/2007 10:10:48 AM
From: SI Bob	Respond to of 78456

Clarification on my [t]ADCT[/t] position: Though I usually buy calls as nothing more than a highly leveraged trade, in this particular instance it's a little bit of that, but also more along the lines of what I think is the true spirit of a call contract. While it's relatively inexpensive to do so, I'm getting myself the right to buy the stock at a specific price if it does well in the next month, so this is one of those rare (for me) situations where my inclination is to later exercise the call rather than sell it. If it does well, I'll likely take the stock and if it doesn't do well, I'll take the smallish loss on the contract. I lightened up on [t]ELN[/t] simply because it gave me a trading profit opportunity. I was oblivious until last night why that opportunity presented itself. Phase 3 testing of an Alzheimer's compound has started (it's the drug that's kept me long this stock for ages, with Tysabri as a safety net) and the results of Phase 2 will be out in the near future. An event I've really been anticipating. And they announced the start of Phase 2 on yet another Alzheimer's compound. Had I not put in a triggered trailing stop and gotten filled and actually noticed that it was up and why, I likely would've added instead. It's easily my fave pharma. Tysabri (for MS), two AD compounds, and nanocrystal technology, which has had some adoption but not a lot yet and allows a compound to be reformulated to stave off generic competition longer.