Replies to post #381067 on Anavex Life Sciences Corp (AVXL)

[nidan7500]

Sokol

Results may be negative and share price will drop sharply. Results may be positive, but not so positive as to indicate near term approval. Results may be controversial as has happened in the past

Free Guidance. Only focus on the product . Is it safe and effective? Everything else will take care of itself...it's complicated.

[crescentmotor]

If so, he will pocket some cash. He is de-risking to some extent-not altogether.

I don't disagree with the essence of your post except that no de-risking will occur except for the $1/share premium Steady will pocket. If one wants to de-risk with options, he needs to buy puts or adopt a different strategy. I sell puts on one of my stocks almost on a weekly basis. That does effectively lower my cost basis a little so long as the stock price holds above the strike price after considering the premium, but it does not de-risk that investment in any manner. In fact, if the trade goes against me and is exercised, I have to buy shares and my portfolio risk actually increases because I have more capital at risk.

[Hoskuld]

Selling $45 calls is imo short term bullish too. If you didn't think $20 or $30 or $40 was possible then you would sell covered calls at one of those levels instead of $45.