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

To: Ed Ajootian who wrote (1335)	10/28/1998 10:26:00 PM
From: David Howe	Respond to of 10280

Whatever strategy you guys decide is best, you might want to implement it in the very near future. IMO, we won't be stuck in the lower 60s for much longer. The FDA will probably come back with the labeling approval in a week or two. The sales force will kick it into gear and the revenue will start to roll in. Goodbye resistance at 70. Hello a whole new level. Obviously, the labeling approval is just one piece of news that we can expect. I won't go into greater detail at this time, but IMO we're about to witness a real launch. I'll start pounding the table once you guys have loaded up. Just let me know when! <g> Dave

To: Ed Ajootian who wrote (1335)	10/28/1998 10:31:00 PM
From: M. Ramle	Read Replies (1) \| Respond to of 10280

Ed: You just answered your question, i.e. the only reason I normally buy the puts on the lower strike price (5-10 pt. spread) is as a hedge to reduce the margin requirement, especially if am taking a large-size position (50 contracts or higher). Once I am put the stock for selling the November 60 puts, I would normally sell the November 55 puts to unravel the hedge position (and maybe collect some premium). Keep in mind that selling a naked put option is very risky, and you are always better off minimizing your risk and margin requirement by hedging it with a similar strategy like the one I follow. I had been burned pretty badly in the past for selling naked put options (UAL in '89), and I will never do it again. GOOD LUCK. Mazen