NFLD... LEAP Covered Call Play

Did you see the following article yesterday?
http://biz.yahoo.com/ap/061128/northfield_labs_mover.html?.v=1


Analyst Morgan Joseph assigned a target price of $6 for this stock. They don't expect FDA approval. Of course, it could go either way.


Quote from jllm03:

Enterd a Bull put Credit spread today on this.
Premiums are there for the taking after a nice bounce in the stock.
BTO 25 DEC 5 puts @ .3 and then STO 25 DEC 10 puts @ $2,125.
16 days till exp.

The LEAP Calander Spread was tempting, but I did not see much movement in the Jan LEAP when the stock was moving.
More...
 
Quote from jllm03:

Enterd a Bull put Credit spread today on this.
Premiums are there for the taking after a nice bounce in the stock.
BTO 25 DEC 5 puts @ .3 and then STO 25 DEC 10 puts @ $2,125.
16 days till exp.
More...
Did you mean the Dec 15 puts at $2.125? The Dec 10's are .75x.90.
 
Quote from loufah:

Did you mean the Dec 15 puts at $2.125? The Dec 10's are .75x.90.
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OOOPs...
Sorry, that was the credit I received.. The price that I sold them were .85 x 25 contracts.
 
Quote from frank99:

Did you see the following article yesterday?
http://biz.yahoo.com/ap/061128/northfield_labs_mover.html?.v=1


Analyst Morgan Joseph assigned a target price of $6 for this stock. They don't expect FDA approval. Of course, it could go either way.
More...
Saw it but it looks like the market is just shrugging off this brokers recommendation...Had a nice jump in buying yesterday...may be the short squeeze..dont know. I do not plan on owning this stock for long...just 2 weeks is all I care about for now.
 
Quote from jllm03:

entered a Bull put Credit spread today on this.
Premiums are there for the taking after a nice bounce in the stock.
BTO 25 DEC 5 puts @ .3 and then STO 25 DEC 10 puts @ $2,125.
More...

So, I've been looking at the options and started thinking ( :eek: ), wouldn't it be safer to just go naked and sell the Dec 5 puts alone? If she runs down on bad news, wouldn't you have some safety built in with "compression", I mean, it must be worth a coupe of bucks with the assets it has? She can blow through 5, but you would think you'll always have a couple of bucks of value. If she runs through 5, your loss is maxed out.
 
Probably not...it looks like it is just a conference with it's peers, not the stock owners conference.
Anyway...all I care about this stock is that it stays above $10 for the next 9 days.
After that re-evaluate what the next target will be.
If it holds up it's price, it may be a good play to sell the Jan 7.50 or the Jan 5.00 option.
 
Nice run up today. $16.14 for the high.
No news on the stock can be found.
It looks like it shrugged off the SELL recommendation that coincidentally can out right after it made it 52 week high of 16.36 last week.
 

Attachments

The CEO is speaking tomorrow at a conference. I wonder if investors are anticipating an announcement or something?


Frank

Quote from jllm03:

Nice run up today. $16.14 for the high.
No news on the stock can be found.
It looks like it shrugged off the SELL recommendation that coincidentally can out right after it made it 52 week high of 16.36 last week.
More...
 
Up another 1.57% in After Hours. It doesn't usually move this much in after hours trading. I bet investers are anticipating an announcement tomorrow. Whether or not they're right, we'll see. :-)


Frank

Quote from jllm03:

Nice run up today. $16.14 for the high.
No news on the stock can be found.
It looks like it shrugged off the SELL recommendation that coincidentally can out right after it made it 52 week high of 16.36 last week.
More...
 
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