RespireRx Pharmaceuticals Inc (RSPI)

[Market_Fest4]

nascjay,
The strategy you described could be accomplished if you bought August 2.5 Calls today (if they were offered, which they are currently NOT offered, they might be priced at $60 per Call = 100 shares). Then, after the FDA decision in April-May, if the stock spiked to $5, one of your Calls would be worth at least $250. So you could sell it outright and pocket a 400% profit. Or you could write (sell) covered August $5 Calls to recoup your initial investment. You would also be able to make more profit on expiration in August, as your position would still pay you everything between $2.50 and $5.

Your buyer would get everything above $5
MF4