BIIB hedge suggestions

Discussion in 'Options' started by marcoPolo21, Feb 8, 2013.

  1. my parents have about 7,500 shares of this stock,
    and are determined to just hold on, seemingly forever.
    They've owned it for more than 10 years.

    Anyway, I thought I might give them
    some downside protection, option ideas,
    that would protect them through the next stock/market crash.

    I was also wondering,
    if they could "earn some premium" to boot,
    they might be more inclined to listen.

    marc
    :cool:
     
  2. zdreg

    zdreg

    obviously you know nothing about tax law or options.
    stay out of your parent's affairs is the best advice u will receive.
     
  3. it's all lt cap gains now so that's good.

    the "caveman" answer is really simple - just put on a collar and be done w/ it.
     
  4. 5x in 10 years. maybe they shiould be giving you some ideas instead.

    You can't hedge and earn premium without substantially giving up some of your "hedge."

    So question becomes what are you trying to hedge for? If it's a generic stock market crash then clearly they don't care. They rode it through the tysabri drug event in 2004, all the small stress periods through 2007, 2008, 2010, and 2011.