Replies to post #595 on The Options Box (OBOX)

[RCKS]

Muell I believe what Bob means is that has purchased the FHRX Calls @ the 5.00 strike for a cost of .40 or $400 for 10 contracts.
good trading steve

[bbgold]

Hi Muell,
Earlier in the day I picked up some July $5 Calls on FHRX at 70 cents, waay too early. By purchasing the Call I am anticipating, or betting, that the price of FHRX will be Above $5 before the Options expiration on July 19th. As the stock continued to fall I bought some additional Calls at 40 cents later in the day, therefore Adding to my original position. So far it Looks as though there will not be any further Bounce out of the stock. I will continue to hold the Calls though in anticipation of the stock recovering before July 19th. So far it does not look like a Good trade as FHRX is now trading at 4.25, well below $5. If the stock can recover above $5 before the expiration then it should be profitable. Right now it does not look like it will be though. FHRX is but another stock that has been scarred by Arthur Anderson and missing earnings forecasts. Interesting to me is that it is still anticipated to post a Profit and it Drops. Other stocks that post lower Losses continue to Climb. It makes not sense to me <GG>.

Feel free to ask any questions Muell. I will be happy to answer them. Sincerely, Bob :^)

Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!