Replies to post #100877 on Biotech Values

[medchal]

I don't do puts, but if you think any other calls are attractive to write, first look at DNDN.  The calls there have been madly over-priced for more than three years.  Yesterday, on the big spike subsequent to the unremarkable earnings report (which Dendronites took as wildy favorable, of course), the January $35 calls were bringing well over $9 at the bid.  I sold a few, married, making the stock purchase just over $30 with a $35 return, if exercised, in less than six months.  I'd call that close to insanity, since the buyers need to yield $44+ to exercise profitably and the $9 premium will waste away pretty quickly unless the stock really takes off.

Alas, MNTA holders are not as fanatical, so one cannot make the same kind of money on those calls.