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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Andrew H who wrote (4219)	10/22/1997 12:16:00 AM
From: aknahow	Read Replies (1) \| Respond to of 17367

Andy, good questions. I sell calls for cash flow. While in hindsight it would have been better to just hold the darn shares I nor anyone knows that when the options are sold. The point of the post was exactly to point out that risk reduction by selling as a stock rises or selling calls is not always the best decision, or at least is much more complex. Selling out at a profit means taxes and reinvestment can mean the same or greater risk as well as lessor risk. I guess the post about the puts was an after thought since in reality many of the stocks were just inventory that I was willing to buy if paid enough to do so and on which I fully intended in most cases to be happy to be rid of by selling calls. So with XOMA if I ever sell 10 or more calls, if it is called I will probably write puts on 10 or more, while simply holding the rest if XOMA continues to make progress with trials, products, deals.