Intellipharmaceutics International Inc. (IPCI)

[AngeloFoca]

Here are details of what I did with the options, I researched what the stock price was when I did this - hopefully all can follow it.

Between Jan 14 and Jan 23, while IPCI stock was trading at ~ $2.25, I sold 447 July 2015 $7.50 PUT options (each option is 100 shares so = 44,700 shares) for an average of $5.60 per share ($5.601066 exactly).

That is, I gave "someone" the right to PUT to me between January xx and July 17, 2015 IPCI shares at a price of $7.50 per share and that "someone" paid me up front $5.60 per share for that right.

This effectively made my cost for each share $1.90 if PUT to me... or 35 cent discount to the trading price of $2.25 at that time.

So the value of the 44,700 shares that will be put to me on monday is $3.71 x 44,700 shares or $165,837.00, plus up front I received $250,320.00 for a total of $416,157.00 - his takeaway is 44,700 x $7.50 or $335,250.00 leaving me with a paper profit of $80,907.00.

In short... he was hoping IPCI would be below $1.90 so as to make a profit, whereas I KNEW it was going to be around $50.00 LOL