Replies to post #9533 on Arena Pharmaceuticals, Inc. (ARNA)

[narvo0]

Sorry dustin, put/calls/marin so dangerous. Lost tons in 02. It's good to have a margin acct to settle trades as soon as you sell.

[crawfish poboy]

chances are you opened the trade when premiums were too high.

[shankapotamus]

There is no conspiracy. After the stock started trading again and it was obvious that the pps wasn't going so high, the premiums had much less value. Think of the premium as a "speculation fee".

Even a straddle/strangle isn't a safe bet when both contracts have an inflated premium. If you want to trade options, I suggest you learn more before betting money with them. These FDA decision plays have a ton of premium added because people thing it's going up or down in a big way.