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Biotech / Medical : Biotech Derivatives -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (12)	2/25/1999 10:40:00 AM
From: Biomaven	Read Replies (1) \| Respond to of 555

I've looked at this strategy many times in the context of some significant known upcoming event (like an AC meeting). I've always ended up rejecting it because the premiums were just too high. This strategy can work (like it has for Rick) if there's a significant upcoming event that the rest of the world doesn't know about yet or hasn't reacted to yet <G>. My other big concern with fancy options strategies is that you get eaten up by the spread. It's bad enough paying for one spread, but for a combo where you have to pay for 2 spreads on entering the position and potentially another 2 on exiting, it's pretty tough to come out ahead. Peter

To: scaram(o)uche who wrote (12)	2/25/1999 11:29:00 AM
From: LLCF	Read Replies (1) \| Respond to of 555

< Did it with GILD yesterday just after the GLX news.> Someone bought 400 GILD march 40 puts this a.m. paid slightly high price.. must expect a move near term. DAK