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To: davep who wrote (14206)3/9/1998 3:20:00 PM
From: davep  Respond to of 95453
 
you collect 50 cents but your downside is 3 bux(mdco support@17).Your gain is 2.5% vs potential loss of 15% on holding the stock or 6-1 risk-reward ratio...not good



To: davep who wrote (14206)3/9/1998 3:25:00 PM
From: SJS  Read Replies (1) | Respond to of 95453
 
True. Not much downside protection. However, I don't think MDCO is gonna fall lower than 19.

Remember, I sold 20 calls for March for 1 5/8 or so, and was considering over the weekend that I would execute a new buy/write trade, or buy them back. What a difference a day makes!!

The write at 22.5 has already gone south, as a matter of fact, because the options are now bidding 1/4, 1/2, and the stock is about the same price.