NorthWest Biotherapeutics Inc (NWBO)

[AngeloFoca]

Interesting trade I made yesterday that most are not aware of their availability.

at the time I did this, NWBO was trading betwee $6.60 and $7.00.

First I Sold 50 Oct 14 $12.50 PUTS @ $6.50 - equivalent to buying 5K shares at $6.00

I sold 5K shares NWBO @ 6.96

I bought 50 Oct $7.50 calls for 90 cents - the difference between $6.96 and $6.00 - allowing 6 cents ($300) to more than cover commissions

If you study that - you'll see that my ownership and cost basis is exactly the same, except that for between $7.50 and $12.50 it is the equivalent to owning 10K shares because I make money on the PUTS and CALLS.

Below $7.50 I break even - @ $12.50... or above... I make the maximum profit of $25K above and beyond owning only the stock outright.

If you're considering buying NWBO here @ $7.66, consider selling the Oct $12.50 puts instead - there are 586 (good for 58,600 shares) at a bid of $5.70 - that is like getting the stock at $6.80 instead of $7.66 and if you have a Margin account, that $5.70 is applied to that, which saves you another 6 to 9% depending on your agreement.

The drawback is that options are not quite as illiquid as stock

ps when there are massive amounts available like 586 at the bid, you could probably get filled at $6.00 ask bringing your cost basis to $6.50

try it for 10 options - equivalent to 1K shares - remember, if your bullish, you SELL PUTS