Ariad Pharmaceuticals Inc fka ARIA

[chazzzzz]

My honest opinion is that the stock will continue to tank along with the overall market. Unless some news or what have you. Now if you want an interesting stategy then plug this into your calculator.

First you must be willing to buy shares at around $1.65.

Sell 10 Jan 12 3.00 puts @ 1.35. Buy 10 Aug 2.50 puts @ .20

Reasoning, the market sucks so we could see sub $2.00. The August puts would be worth .85 @ stock price of $1.65.

You would be put at around that price but the Aug puts would offset some of the price. Net 1000 shares at an armageddon price of about $1.00

Selling 10 Jan 12's and buying the Aug nets +1150.

However your margin requirement would be about $1850.

Interesting enough. I haven't guessed upon the timeline of events so the August puts could be substituted with later months.

If my logic is crazy please correct me. If you have other ideas please pass them along