Thanks. Well, the stock is now below the strike, and if it finishes below I will not be able to test what happens there But what I really tested right now is the strategy with 100 long stock, 1 short call in the money with very good premium (25%>) and a far in time long put. With this strategy, no mater that the stock is down by 38% I'm still on profit, if the call expires worthless i preserve the premium (2.25$), can sell the stock with a 2.26$ loss and can sell the long put with a 0.65$ profit. I think this strategy works well with companies that are expecting FDA approval What do you think?
It's a really good strategy when the stock is down no more than the intrinsic value of the call. When it's down a lot more, it's a terrible strategy.