If you believe that cldx will achieve approvals in the next 6 months to a year, buying calls will give you a lot of bang for the buck. You will spend some money buying them and if they expire without a very decent increase in share price, you are out the money that you spent for the calls. On the other hand, say for example that you bought the call for next June or whatever and the share price was $60 at that time and you bought the right to purchase them at $30 for example and spent, say, $4k for that right to buy 20 contracts (100 shares per contract), you pocket one heck of a lot of money. Therefore, cheaper to buy the calls with the risk that they will expire worthless than to buy the stock outright. It's a gamble, but the return could be substantial, particularly if the Celldex story and company remain strong. I will be buying the calls, time frame and price to be later determined, but I will wait to see where the share price settles in. Right now it's been a yo-yo, so I will wait it out.
exactly ...if we get to 60 you will see a 1k invest right here be worth 20k or more possibly ..i dont have a formula for where calls / put will be at what pps , and hohnestly i dont even understand all these option strategys etc...i just spread my bets , i only need 1 out of 4 to work ..right now its halo im up big on ...cldx or any of my plays can go to zero right now and it would not kill me .
ok , say you buy 10 jan 40s right here at 1.40 ....for $1400 ....if it gets to 40 they will be at least $7 probobly more like 9....you can sell at anytime , you dont have to wait till jan...10 times $700 is $7k...you sell and put half back on further out ..i always put half back in other plays...i bought 12s back at 9pps for 50 cents and sold them for $9 at around 18 pps i think it was , i have 5 other long bio call posistions thanks to cldx .