Option Trading Articles: RE: [ConservativeOptionStrategies] Re: check out ITMN May Puts5

Tuesday, May 4, 2010

RE: [ConservativeOptionStrategies] Re: check out ITMN May Puts5

If you notethe chart, when the initial discussion with the FDA about maybeapprove came up, the stock was at ~15. A $5 credit spread there is $0.46 and is a lot safer!

--- On Tue, 5/4/10, Hand, John <john.hand@opm.gov> wrote:

From: Hand, John <john.hand@opm.gov>
Subject: RE: [ConservativeOptionStrategies] Re: check out ITMN May Puts5
To: "'ConservativeOptionStrategies@yahoogroups.com'" <ConservativeOptionStrategies@yahoogroups.com>
Cc: "Hand, John" <John.Hand@opm.gov>
Date: Tuesday, May 4, 2010, 7:36 AM

Or,

short at 20 for 1.61
long at 17.50 for 1.04
net credit = 0.57
breakeven = 19.43
max risk = 1.93
percent return = 30% not even annualized
JH

-----Original Message-----
From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of joe & leigh
Sent: Tuesday, May 04, 2010 10:15 AM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: [ConservativeOption Strategies] Re: check out ITMN May Puts3

why not a bull put credit spread

short at 20 for 1.61
long at 15 for 0.81
net credit = 0.80
breakeven = 19.20
max risk = 4.2
percent return = 19% not even annualized

drjoe...good luck

--- In ConservativeOptionS trategies@ yahoogroups. com, "Hand, John" <john.hand@. ..> wrote:
>
> 1 - currently $48
> 2 - soars? Who cares; I'm doing a CSP.
> 3 - tanks? From $48? I'm doing a $20 CSP at $1.52 for 7% ROI in one month. $28 of protection.
> 4 - looks like plenty of people are currently doing Puts.
> JH
>
> -----Original Message-----
> From: ConservativeOptionS trategies@ yahoogroups. com [mailto:ConservativeOptionS trategies@ yahoogroups. com] On Behalf Of joe & leigh
> Sent: Tuesday, May 04, 2010 9:34 AM
> To: ConservativeOptionS trategies@ yahoogroups. com
> Subject: [ConservativeOption Strategies] Re: check out ITMN May Puts2
>
>
>
> john,
>
> fda is either going to approve or disapprove today their drug for pulmonary fibrosis ...the stock is going to tank or soar.....biotechs espec with fda approval is VERY dangerous. look at the covered call premium (10.4 for an atm call for 3 weeks on a 48 stock). how would you try to make money and have protection? drjoe
>
> --- In ConservativeOptionS trategies@ yahoogroups. com<mailto:Conservativ eOptionStrategie s%40yahoogroups. com>, "Hand, John" <john.hand@> wrote:
> >
> > Look at the prices. Ie, $15 @ $0.69 = 4% ROI - in one month.
> >
> > Also: http://www.gekkowir e.com/?p= 3218
> >
> > Of course, DD is suggested. JH
> >
> > -----Original Message-----
> > From: ConservativeOptionS trategies@ yahoogroups. com<mailto:Conservativ eOptionStrategie s%40yahoogroups. com> [mailto:ConservativeOptionS trategies@ yahoogroups. com<mailto:Conservativ eOptionStrategie s%40yahoogroups. com>] On Behalf Of joe & leigh
> > Sent: Tuesday, May 04, 2010 8:52 AM
> > To: ConservativeOptionS trategies@ yahoogroups. com<mailto:Conservativ eOptionStrategie s%40yahoogroups. com>
> > Subject: [ConservativeOption Strategies] Re: check out ITMN May Puts
> >
> >
> >
> > John, please don't post just in subject line. you obviously saw something in those puts and have a thought. why don't you tell us what you think you saw and how you or us can profit from your observation. .....drjoe
> >
>