Pharmboy’s Review
by phil - September 30th, 2009 4:20 pm
Courtesy of Pharmboy
Good day to all! The corn is ready for harvest, and the fall season is upon our Pharm. It is time for a quick review to see how we have done, and add a few more goodies to our Plots.
From our 15-Aug-09 list:
Novartis – Buying the $40 Jan10 C @ 6.40 ($1 premium), selling $45 Sept09 for 1.35 (also $1 premium). The $40s Jan10 are now 9.10, and rolled 2X to the $50 Oct, now at $0.45 (small loss on the roll). Net ~$2.1 up for the trade.
Bristol-Myers – Buy outright for the dividend, or buying the $20 Jan10 C @ 2.80 ($0.5 premium), selling $22.5 Sept09 C @ $0.55 and $22.5 P@ $0.7. I think this company has room to run. Bought outright and the stock closed on OPEX at 22.47…..can’t get better than that……Only stock on this position, but looking to sell the Nov09 24/22 P/C for 0.44/0.75.
SNY – Not as confident on the SNY story as of yet. I would sell the $32.5 Sept09 P, being prepared to roll down to the $30 Dec09s. These expired worthless….nice gain.
JNJ Buying the $55 Jan10 C @ 6.50 ($0.5 premium), selling $60s Sept09 C/P for 2.20. $55 Jan10s currently $6.10, and the Sept P expired worthless. Sept09 C rolled to the $60 Oct09 C for a 0.50 credit. Puts not sold as of yet.
Genzyme – Buying the $50 Oct09C @ 4.2 ($1.5 premium), letting it run for the next few days, and then selling $55 Sept09 for 1.25 or better (all premium). $50 Oct09 are currently $6.80 and the $55 Sept09s were rolled up to the $57.5s almost even. These will need cashed out for a $2.5 gain, or to be adjusted to the 50 Apr10 C for 9.8. To help offset the costs, I would sell the $55 Oct09 P for $1 or better. For a net $1 out of pocket…