NFLD... LEAP Covered Call Play

Discussion in 'Options' started by jllm03, Nov 2, 2006.

  1. I don't know much about this company. Are they a one trick pony (is the whole co. built around this one drug)?
     
    #51     Dec 19, 2006
  2. In and out for a cool 500 bucks. Just watched as the buying started after the fall and jumped on the train.
    Longer term, I do think they have all their eggs in one basket.
     
    #52     Dec 19, 2006
  3. After hours massacre. They screwed up the data. Up in flames tomorrow. Conference call is terrible.
     
    #53     Dec 19, 2006
  4. $5.55 on the bid...:eek:
     
    #54     Dec 19, 2006
  5. jj90

    jj90

    Been late to this thread, although been monitoring it for a while. Looking at the prices of the Jan series alone, it looks like a reversal could have been put on for a credit. Note that today was not the only time I looked at the chain. Am I missing something? Did retail pump put IVs to crazy levels for risk free arb? The same reversal could have been done for a credit 2 weeks ago.

    I wanted to get in on the downside, I've seen these types of plays before, but I tell myself to stick to high prob. non gambling type bets.

    BTW TELK and AGIX for potential biotech plays. Have a look at IV for those.
     
    #55     Dec 19, 2006
  6. ellevers

    ellevers

    The reversal has probably been setting up because the stock is really hard to borrow.
     
    #56     Dec 20, 2006
  7. Ouch.... I hope you naked put sellers are ok. I had a bull diagonal spread on for a small price so not too much harm.

    Is everyone on the naked put side ok?

    NFLD down 48%
     
    #57     Dec 20, 2006
  8. OK here Coach. :D

    I was naked 20 Dec 5 and 10 7.5 Puts...
    all expired...:)

    No other positions taken.
     
    #58     Dec 20, 2006
  9. Thud!

    High on the list of why I don't sell puts on biotechs.

    Lots o' selling before the CC. Somebody knew something?

    Nahhh, just a good guess... :p


    <img src="http://ichart.finance.yahoo.com/w?s=NFLD"/>
     
    #59     Dec 20, 2006
  10. jllm03

    jllm03

    I opened a bull put spread today....
    Yeah ..everyone will start telling me all the downside of it, but there is not much downside left.
    Open up with BTO 50 Jan 2.5 puts for .05 (-$250 plus commision).
    I waited for the low this morning of 4.75 then STO 50 Jan 5 puts for .60 ($3000 credit).
    If I stay in this until expiration there should be a profit of about $2,600.
    I may bail out at any time though...take whatever money I can get and run....
    With the massive pull down in the stock, and the news stating that the trial data may be flawed, this should start to rise back up some, but no where near the $15 range it was last week.
    I will be happy if it just stays above $5 for now.
     
    #60     Dec 20, 2006