Amarin Corp Plc (AMRN)

[Whalatane]

Raf ...well if you are wrong you obviously increase your loss ..

If the ITC does not accept AMRN's case then the stock will drop and your calls will probably be wiped out.

You can look at this thru various scenarios

ITC declines case ...stock drops , options wiped out
ITC declines case ...stock drops but you had sold calls and that limited your loss
ITC declines case ...stock drops but you had bt puts as a hedge and that limits your loss


ITC accepts case ....stock jumps and options are profitable
ITC accepts case ...stock jumps but since you had sold calls your gain is limited
ITC accepts case ...stock jumps but your puts are worthless.....limiting your net gain.

You don't own the stock ...so you buy the calls . Upside possible gain ( ITC accepts case ) may be 5 times that of maximum possible loss ( ITC declines case )

Can anyone think of any other combinations ?

Kiwi