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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?


To: Rocketman who wrote (5802)10/23/1998 12:58:00 PM
From: Vector1  Read Replies (1) | Respond to of 9719
 
Rman,
Here is my thinking on the covered calls. First I am a major AGPH bull. They have excellent management and hold the record for pushing a drug (Viracept) through clinicals to approval. Viracept is the class of the PI's and will continue to gain market share from Crixivan. Moreover, Viracept appears to act synergystically with Sustiva and IMO the gold standard wil be a four drug regime including Viracept for some time.
Ok why do I want to sell covered calls. I believe the stock will trade in a range of 33 -43 throught he end of the year. If the stock hits $40 over the next week or so the November 45s should trade at $1 1/2 to 2. I see it as free money because if the stock climbs to 47 in that time frame I would sell anyway.
V1