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Biotech / Medical : Centocor ( CNTO ) -- Ignore unavailable to you. Want to Upgrade?

To: Todd D. Wiener who wrote (736)	7/2/1998 10:56:00 AM
From: PawPr	Read Replies (1) \| Respond to of 965

That's not something I would have done. With the stock presumably about 36 when you did the transaction, the put without any time premium is worth 14. So all you got is an additional 3 point time premium which I think is lousy compensation for the risk inherent in being short a put 2 1/2 years from expiration. BT

To: Todd D. Wiener who wrote (736)	7/2/1998 11:23:00 AM
From: Mark Oliver	Respond to of 965

Interesting trade, but I don't think I would like the time frame. On the one hand, if the stock lags for a year, but does eventually come around you'll still do well. On the other hand, if it does well right away, then you'll have a lot of premium to deal with as the stock rises. Say, for example the price is $70 in 6 months, the put would still be worth perhaps 5 or 7 dollars as you've still got a long time to expire and the volatility of a biotech is great. In the meantime, you've presumably got some money tied up backing the put until it's concluded. In the end, you will probably make money. Good luck. In the near term, the stock is going down. The FDA has slowed the release, but it's only sowed, not blocked. I would have hoped for a bigger drop to buy, but since the street is not over reacting, I'll let it go until I feel the price looks settled. So, do you all understand what the delay is about and how long before they get the go ahead? Regards, Mark

To: Todd D. Wiener who wrote (736)	7/3/1998 10:54:00 AM
From: FNS	Respond to of 965

Todd: Good luck on your trade....hope you don't get the stock 'put' to you... I and other shareholders getting somewhat disenchanted with the stock! I hope CNTO clears the outstanding issues quickly and gets Avakine in the pipeline. I assume the stock will now base lower before approval. Could be time to buy! Perhaps some longer term in the money calls would be a possible scenario! Good luck guys...will be doing Italy via a study/tour group/Urbino, etc. Back mid August. Ciao. FNS PS>>>Offtopic: Bruce, when those oil drillers going to move??? You see WCOM and ATHM go last week! Much more to go! DD makers very dead but could start showing some signs of life! (maybe!). QNTM basing!