Amarin Corp Plc (AMRN)

[ferretmoney]

That’s a fairly conservative play which I might make if I already had a large nestegg and was looking to make a nice return while being pretty sure of preserving capital. You had to put up, in addition to the premium received, $15 in cash or margin in hopes of making a 100% profit. The odds certainly favor you making that 100% profit over the next approximately 15 months, or probably the majority of that return very soon if you are able to cover the short put for a fraction of what you received in premium. I might suggest that for that same $15 of risk you might buy a deep in the money call or a greater number of somewhat in the money calls and get with similar safety a higher return with no limit.

In most cases I prefer selling volatility myself and often sell put spreads in order to get more leverage and still reasonable purchase price if shares are put to me. But AMRN is a special case of a stock which seems to be on an extraordinary trajectory and I find myself favoring calls over puts.