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Thanks for the encouragement Chas, it is much appreciated. I do have the nerve and the will to persevere but my experiences with AMRN still make me nervous. It has been daunting to ride this out since 2012 but knowing what we know today, I've gotta go for it. I've had my share of "life lessons" and I know there are countless other unfortunates who are in far worse straits than I am. Cheerio!
HDG, thanks as always for sharing your knowledge and insight.
On October 12, 2017, I opened a small Call Spread. Bought 5 Jan 18, 2019 Calls $4 and sold 5 Jan 18, 2019 Calls $7. I still have the $4 Call but I've rolled the $7 Call up several times to a current $29 Call.
I paid .98 for the $4 Call and received .48 for the original $7 Call. If you had purchased that $7 Call with $10,000 back then, you'd have 208 Contracts worth about $304,000 today. Funny, but looking back at this, I could've had a LTCG with my position if it wasn't in an IRA. Lol.
Hmph, maybe if he just took some Vascepa, he'll be a little longer, Bio. :)
IMO mike, I almost always use Limit Orders when placing Options trades. I've found you can really get scalped if you don't.
Thank you, Joe.
I agree Kiwi, Dan has already been an invaluable resource..
No, not buying them at the close, that's my target position for the close on Nov 9th. I'll be adding to what I already have over the next two weeks.
Thanks for the well wish, smarterer, and BTW that was a nicely written and thoughtfully considered response you posted to Gatogato, one with which I am in complete agreement!
Well circuit, after you see my confession to my old friend Kiwi, you might have other ideas. I will say to you though, I have never seen any stock with the powerful Bull Case that AMRN has. I will be long Nov 16 and Nov 23 Calls in a 1:2 ratio with Strikes in the 23 to 25 range at the close on November 9. That could change somewhat based on price movement between now and then but essentially that's where I'll be.
Oh....Update....and I'll be looking to roll up into Dec or Jan by mid-week (Nov 14). Best of luck to all.
Thanks Kiwi, but I'm afraid I didn't really have one. I'm working on catch up now though. It's an embarrassment for me to admit, but my extremely heavy use of options and piss poor timing mostly wiped me out before the Sept announcement. In late August, I sold some jewelry and an old car and I took a cash advance on my last credit card to put about $6,000 of new capital together. I had been working on establishing positions when the announcement came.
On Sept 24, I thought my head would explode. I had known how good the results were going to be yet I was unable to partake because I'd blown my capital. When I heard those results it was devastating for me, even worse than the AdCom. It makes me choke just thinking of it again.
But my, now $10,000 stake, had turned into about 22 grand. Not the millions that so many deserving others were just getting their heads around but something to work with. My trading immediately went into overdrive - only focusing on AMRN Options. I've been driving for Lyft to help pay the bills and keep a few dollars in AMRN but I haven't driven since Sept 24.
At the close today I had $24,000 in a Roth IRA, $58,000 in a regular IRA and $9,000 in a taxable account, approximately $91,000 and I think I'm positioned well for the next week or so. Everything now is prepping and capitalizing for the Nov 10 AHA revelations. I won't make the millions but I think I'll have $150,000 in Options going into that weekend. It would please me if you'd wish me luck.
Marz, Dan said go into equivalent strike price as he expects pricing to converge. He thinks a Nov 23 Call will be nearly the same price as a Dec, Jan or Mar 23 Call with just small price increments. So a $1 Strike roll-up may be possible as an even trade.
Kiwi, why don't you consider putting on a Bull Spread before the Nov 10 announcements. I'd be happy to suggest some possibilities or maybe you'd feel more comfortable getting some thoughts from Chi-town Dan. He helped me over a mental block I had while trying to clear a position. Definitely knows how to play the options, he is a Pro!
So you think it could be $30.00 before the AHA announcement on Saturday?
Don't forget you still get a tax write-off for mortgage interest - at least for now. You need to look at the entire picture. Unfortunately, the Real Estate IRA won't work for your purpose. You cannot use the real estate in the IRA for your own personal benefit. That would be a no-no with the IRS and disqualify the investment as an IRA.
Yeah, I would really like to see a new high today. The right message to the market on a horrific down day generally but with all that's on the horizon for AMRN!
Sorry Always, there is no long term/short term in an IRA Account, everything when withdrawn timely is taxed at current income rates. The expectation is that you'll be in a lower tax bracket when you withdraw after retirement. If you withdraw before 59 1/2 you are subject to penalty except in certain exceptional situations......buying a house may be one of them? Check with a good tax planner/accountant before acting.
My phone is connected and working fine also. Must be something going on with iHub network, I guess.
Is anyone else having a problem using the iHub site tonight? Every time I view a post and attempt to page to the hext one, I get stuck waiting for a network connection. I have been disconnecting and reconnecting to my LAN to trigger a connect to iHub. Anyone else?
I guess you're right, don't know what came over me...oh yeah, righteous indignation!
That sounds like the FDA and it's exactly what BB is irate about! The most senior level people at FDA are aware of Endocrinology Conference in Philly and of Reduce-It Trial results. So what do they do? They have a conference to discuss the 8-year old guide to "How to Treat Diabetic Folks Without Giving Them a Heart Attack". It's an effin' joke but nobody there gives a shit.
Well, a whole gang of drunks and a bunch of innocent pedestrians! Let's not be biased, drunks and pedestrians are people too....
Sorry Dan (and Marz), guess I wasn't very clear with my explanation. I am Long the Dec 13 Call and Short the Nov 15 Call. I paid $4.06 for the Dec and received 1.82 for the Nov for a net Debit of $2.24. I was trying to be clever and wind up with just the Long Dec after expiry of the Short Nov on 11/02/2018. But AMRN had other plans, the stock price almost immediately ran past my strikes and into the money.
So I can trade out now on the Dec at $8.05 and the Nov at $4.95 for a Net Credit of about $3.10 less comm. But I've been trying, unsuccessfully, to create some not too expensive trade that lets me hang on to the Dec Call after the Nov 2 expiration. Sorry for the confusion, but that's what I was asking about. Thanks for looking but don't waste any more time on it. Have a good day!
No Call yet Marz but I know it'll be coming shortly. I have an order in to close the spread for $6.05 Credit but it's been there several days and nobody biting. I was trying to use minimal capital to put the Dec position on and watch the Nov fade away. No such luck though, I believe stock moved away within hours.
Hi Dan, got a hypothetical. I put the following position on during the week following PE announcement: AMRN Nov 2 $15.00 Call covered by Dec 21 $13.00 Call. Cost basis for spread was $2.24. Price got way ahead of me very fast. Been trying to be creative but I can only imagine one way to unwind, the obvious one. You see any alternatives?
Trigger Finger.....Ooops
Looks like I have to split the difference with you VuBru.... As far as the dates go, I have been wrong about every single one. That has cost me dearly...a number of bundles over the years. Playing catch up now with some success. Hope I can keep it going! GLTA
No problem ferret, I noticed the slip but your explanation of the spread was quite clear. Thanks again.
Thanks Dan, your 2 cents is worth a dollar to me.
ferret, thank you..got it! May I also ask about the 3x/2x reference, to what did that refer? Thanks again.
Hi Dan, catching up on burgeoning posts. In your response post #151106 you referred to a Call Spread preference for the Nov 23 rather than the Nov 16 Calls. Is that correct?
ferret, how is a 3x/2x Put Spread structured?
VuBru and Ferret, thanks I will double check but I believe you guys are correct. I took the opportunity to use an existing Roth IRA as my options trading account. These are all short term, high potential profit trades so perfect for options as long as I have no withdrawal problems.
Also my belief but I never know when to trust myself any more. Thanks for the response!
The custodian of your SEP-IRA should decline to wire your shares. Remember you were given Tax-Deferred status on the IRA funds when they were deposited (before tax money). You got the benefit of increased funds availability for investment. Now Uncle Sam wants to get paid based on your current regular tax rate, no more deferral so funds withdrawn are treated as regular income. Also remember there are RMD requirements that can be tracked in the regulated IRA account but not so readily in your Taxable accounts. I took a crack at transferring from an IRA and a Roth IRA to a cash account and E*Trade rejected both, said it was a no-no. Needed to apply for an "IRA Distribution."
VuBru, if I'm eligible to put new funds into an existing Roth and I do so and make wads of profit on what I invest those new funds in, do I have any restrictions on what or when I can make withdrawals. The Roths have existed for many years. TIA.
TTE.....Ho-ho-ho!
Believe it or not, those $39 Calls have been out since just after the 9/24 announcement!
Wow, FDA issues guidance just in time to have an impact on Vascepa Advertising. What a shock!
BB, might also see some follow-up at Friday morning breakfast in Boston. Not sponsored by Amarin but Harold Bays and Deepak Bhatt presenting:
6:30 - 7:45 am
CME Breakfast Symposium B
Cardiovascular Risk Reduction in T2DM: Applying the Trial Data to Clinical Practice
Chair: Robert H. Eckel, MD
Presenters: Harold E. Bays, MD; Deepak L. Bhatt, MD, MPH; Lawrence Blonde, MD