BR normally adds to these positions until they get to 30-35%. Whatever internal cards SQNM is holding, very talented and prominent medical people have been joining their executive team in the past 2 months. Best way to participate is long term, out of the money calls that do not suffer the accelerated price decay characteristics of near term options. The Jan. 11, 20 strike call option, at .20, was actually selling slightly below it's theoretical value at the close on Friday.
OTM calls are pure time decay, the stocks so cheap in real dollar terms if you wanted to be long for a long period of time just buy the stock. In order to aquire 30 to 35% BR would have to file with the SEC and announce their intentions so thats not something they normally do. You started the thread called for the SEC. Nothing here for the SEC to care about.
So all the stock has to do is become a 5-bagger in 1 year? It could happen, but not worth the gamble imo (then again, look at DNDN)
I'm just estimating, but if the stock went up $2 next week, the option might be sold for .70. This is a nice percentage gain from .20. Stock doesn't have to reach $20 in order to make money.
My original post concerned the Accelerated decay characteristics of near term options. Longer options decay slower. The reason to buy the call and not the stock is a chance at a much greater percentage gain. If the stock increased 50%, the call might increase 300%.
Its very simple to figure out how much a call would increase given a 50% move in the stock. Read my post again pay particular attention to where I said "real dollar terms" .... Just buy the 3 or 4 dollar stock.
Dr. Wolfgang Holzgreve was just announced as joining SQNM on 1/28/10. His published work is on the leading edge of Obstetrics. http://www.sequenom.com/cab/wholzgreve