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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: M. Ramle who wrote (1129)	9/3/1998 9:28:00 PM
From: Ed Ajootian	Read Replies (3) \| Respond to of 10280

All, Here's a trade I did today on SEPR calls. I'd appreciate any thoughts on its merits (or the lack thereof <g>). I bought some SEPR April 45 calls and simultaneously sold an equal number of April 60 calls, for a net debit of $6.50. So I don't make a dime unless SEPR closes over $51.50 on the third Friday of April. And my maximum upside is just over a double, (ie if SEPR closes over $60 then I can close the spread for $15). My thinking here was that it was a great deal to trade off some of the upside in exchange for being able to make significant profits on a percentage basis, with just a relatively modest appreciation of the stock, and without requiring it to make a new high. I feel that we are in for some rough sledding with the overall market for the next six months, which will serve to keep SEPR from going nutty on the upside, no matter what good news happens to come out. But I also feel that there is an excellent chance that we will get some very good news out in the intervening months. This news ought to at least keep SEPR from tanking any lower than it is now. Bottom line: as long as this turkey goes up an average of 3% a month for the next 7 months I double my money. Although there have been some stretches of 7 months in the past where the stock went down, this was usually due to lack of news. But with levalbuterol getting approved, oxybutynin study coming out, and maybe an addiitonal Norastemizole study coming out, there should be plenty to stoke the fires with this time.