Anavex Life Sciences Corp (AVXL)

[jimmy667]

I agree one can be right as rain on the stock but be wrong on the timing, taking the longer term Jan 2017 reduces greatly the timing risks and a down general market can stall the best individual stocks. Also your spread strategy reduces risk and give more flexibility to your future trades. Possible losses on the higher strikes could be offset be gains on the "in the money" strikes. If the price has not met the higher strikes one can sell them as long as they have time value then sell them naked if the price starts to rise again but can not get hurt if one holds an equal number at a lower strike. The lower strike appreciation would just be capped at the higher strike which one sold naked at. (A collar) But to be able to effectively trade options like that there needs to be much greater liquidity with open interest in the thousands not hundreds. I believe we will see much more interest in options when the price is in the $20s or better after all why buy options when one could have the whole banana for low $4s just a few weeks ago.
I hope all your call options will be deep in the money soon my friend!
Go AVXL!