I dont plan to hold the puts until expiration. As the stock remains above 12.5, they begin to deteriorate in value.. so I can buy them back well before expiration and still make money. case in point, we are only about 2 pts away from strike.. so the option will begin to correct itself as long as the stock continues to flounder in this range. Selling into the money earns you more premium, but the cost basis is the same as selling a 15 put for 3 bucks. The upside is more with options into the money, vs those outside the money.
July and especially October calls make a lot of sense with OHRP. After phase II results, it's very unlikely the share price will be anywhere near it's current level. Bad results render the calls worthless but the stock is only worth a few nickels more. Good results, though, and you control a lot more shares than the same money would have bought you outright and therefore you've amplified your gains. I am long OHRP and bought all my shares before options were available. Options are a great way to play this stock if you've already accepted your investment as boom or bust. We know when the news that will drive share price is due out. I'm hoping to be able to buy October C @ $17.50 for a favorable risk/reward price during a down-trend on OHRP share price into the high to mid $14 range.