Thinking of locking in some of the recent gains (bought at $36/share). Considering:
1) Paying just under $4 per share to buy a November 60.00 to lock in at $60 level until November 17th. Comfort at a fairly high premium.
2) Finance the cost of the Put by selling Calls at the same time. For instance, sell the Nov 75 Call at the same time as buying the 60 Put - would collect around $.30 per share (4.10 – 3.80 using midpoint between bid/ask prices)
3) To allow more more upside, sell the 80 calls instead.
4) Don't lock in - keep riding. This may be my favored approach as I think any down turn would be temporary.
Good suggestions. I may just sell a portion too. ONXX has been remarkably stable since the pop to 60+. I really thought we woud see more profit taking and pressure from shorts than we have. Downside potential seems to be very small to me. With or without a buyout the potential for good news greatly outweighs possible negatives, such as FDA asking for more safety data etc. I am hoping Onyx remains independent. With a growing portfolio of approved agents and a growing list of indications, sales of sorafenib and carfilzomib and regorafenib could justify a market cap that easily exceeds 12bn by 2015.