Now I believe INSM is g oing to $18 and soon, like w ithin 2 months but a question for you.
If INSM hits 18 and you feel there will be a retrace to $16 before starting up again could you...
1. Sell your shares and wait it out.
2. Sell your shares and go short.
3. Keep your shares but buy put options.
4. Sell your shares and buy put options.
5. Sell and call it a day.
6. Hold on till its over.
This question will tell you a lot about yourself, well the answer will.
You left out one other option (pun intended). Hold your shares and sell calls. I see lots of this going on. You can sell a Feb14 17.5 call which went for as high as 2.85 yesterday. That means you'll accept a 20.35 handle if this baby keeps going up. If it turns around and you don't get assigned, you pocket the premium and reduce your basis by 2.85. Not much on a risky bio which could crash and burn, but my basis is only 7.55, so I could cover myself if SP dropped as low as 4.70.
Very good. I'm just an option "play with" guy. I need a book on this stuff. But the answer anyone might give is not right or wrong but instead gives you insight into yourself. It's a check out who you are question. But no one so far is interested, or at least no one cares to expose themselves.
My point, while longs make fun of shorts, shorts make fun of longs but all anyone is trying to do is make money. The question is posed to expose "all" of us as hypocrites LOL. I'm not judging, just pointing out the obvious. There is no right or wrong just opinion.