Its funny, just after I bought protection yesterday on MNKD, the stock fell hard today and was halted for news pending. However, sometimes there are short raids on these types of stocks, so even though the stock fell, this could turn out to be nothing. As noted in the article, the stock fell 38% prior to the halt and these trades will not be canceled, so if this news turns out not to be that bad, having a stop loss might have killed you on MNKD. I think buying puts is a better form of protection for stocks waiting FDA approval than a stop loss. This is of course assuming that the puts can be bought at a reasonable price. Obviously, I feel good about having the put today, and would feel bad if I had a stop loss, and the stock got taken away only for this to be a stop run. http://www.bloomberg.com/news/2011-...-stock-market-because-of-news.html?cmpid=yhoo
Looks like 2 year delay, in my longer term account I will hold the stock, but in shorter term account, I am going to get out.