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Amarin Corporation plc Message Board

  • mrkincai mrkincai Mar 18, 2013 7:19 AM Flag

    Anyone else selling puts as bullish strategy while stock is so low?

    Would like to buy calls with tthe proceeds. But like to wait for a drop in price. Just windering if any are taking on the risk of buying future shares at say 8$ if the stock has tanked below that.

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    • no but I did collect a nice $1,000 bill for selling March 16 $8.50 weekly calls on friday morning, kinda wished it woulda closed at $8.51 i would still made the $$$ and coulda bought back in my trading shares cheaper, lol.......

    • I've been milking some OTM Calls the last 3 weeks, I've gotten 5, 5 and 8 cents on the weeklies. I usually wait until the last day before expiry or after OB update(last week sold on Wed) and try to find the highest Bid on a call at 5 cents minimum. The commissions are cheap with Optionshouse so still able to knock 15 cents off the basis so far with little chance of being called.

      I am of the mind that until June the stock could go lower than here(May not happen but might) as I believe the market looks 6 months out and June will start the run toward Anchor approval. Marine sales may disappoint WS which could give a dip so staying out of selling Puts for now.

      I think we should see some minor positive news with combo results and Anchor submission acceptance but the next CC likely end of May will be next real catalyst and 1 Q sales and then managements likely inability to forecast sales for rest of year could cause the last dip. Of course an NCE answer can move the stock but I know what week that is all the time so avoid options until the OB is updated that week. Even on Friday OB updates there has been a lag so at 2 PM i can see it's updated but options won't reflect that until 3 PM so you can usually skim some call premiums the last 2 hours.

      So I will sell covered calls weekly if there is the opportunity until after CC for Q1. After that the companies partnership news for Anchor, whatever it will be, could happen at any point, I would think of selling PUTS OTM at that point. And MAYBE adding some long term calls.

      • 2 Replies to ktsven
      • Ill have to check out Optionshouse, i have heard of em, never used em....etrade commision can make selling options at your price point almost not worth the time, of course depending on the amount of options you sell....thats why I chose the day of expiry and within a few cents of the pps it was a nice payday and honestly when it went over $8.50 it didnt matter it was still making money. Today is kinda frustrating, someone tweeted that ARNA Belviq was helping Diabetics lose weight and this is not good for AMRN as the reason the pps is down, ok....heck the wind is blowing out of the north and the pps is down, give me a break...........

      • ktsven's approach is a sound one. I have been selling OTM (cash secured) puts for many months along with selling covered calls against my position and only once did I end up buying more shares at a lower price when the puts were assigned (cost averaged down that way as well). The weekly options are a great way to make some income assuming there isn't some news that causes a sudden dramatic surge in the share price. It makes the whole experience with AMRN much less frustrating (and generally lucrative). Looks like we hang around the 8-8.70 level for the near future and that is fine when you want to sell the 9 dollar calls or 7 dollar puts.

 
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