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Post by mnkdfann on Sept 29, 2020 14:46:02 GMT -5
If you bought 200 calls, if you bought 5 it would be $195. Buy in increments. Since you’ve never bought calls before just buy a few and follow what happens and you’ll understand it. So these, just for example sake, have a $3 strike. From what I’ve read the PPS doesn’t have to be 3 or above to win but it can actually be a little lower than 3 and you can still make money? Is this correct? Or it must be at least $3? I would definitely take your advice and just buy a small amount at first, but don’t think I’d get $3 feb 2021 calls though. I’m not sure we will be at that price by then. Which calls are looking the best to you right now? Instead of buying calls, you can sell puts. That is another bullish strategy. When you sell (or write) a put, someone else is paying you for the right to sell you shares of MNKD at a future date at some agreed upon price. At the moment, for example, it appears people are willing to pay 0.20 for the option to put (or sell) you MNKD shares for $1.50 in February 19, 2021. Looks like a can't lose strategy! Doesn't it? |
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Post by casualinvestor on Sept 30, 2020 9:30:23 GMT -5
Doesn't that equate to getting shares for $1.30 on February 19, 2021? Sounds like that someone is hoping for another December massacre. But it does sound pretty good if that doesn't happen
Someday I'll get an account setup to trade options. I'm just not sure I want more rope....
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Post by sportsrancho on Sept 30, 2020 10:03:30 GMT -5
Selling puts it’s hard because you have to have so much cash in your cash account unless you use margin and I don’t like to do that. And that cash is tied up till the expiration date.
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Post by mytakeonit on Sept 30, 2020 12:21:58 GMT -5
Cash tied up  So it's like buying real shares, but with an expiration date. But, that's mytakeonit |
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Post by babaoriley on Sept 30, 2020 12:30:15 GMT -5
Except that when you sell a put, you WANT the expiration date to come fast; once it comes, you can bank your sales price for the put as profit. But there are risks, such as the stock goes down well below the strike - like to a buck. It can and does happen. Having said that, it can offer a great return, especially if you have a margin account set up.
Another reason it's not like buying real shares is because you have a buffer if the stock goes down some. Not to say that MNKD will ever go down again, but, really, who knows, right?
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Post by casualinvestor on Sept 30, 2020 12:56:56 GMT -5
Cash tied up So it's like buying real shares, but with an expiration date. But, that's mytakeonit So that theoretical .20 to buy shares for 1.50 is a lot like buying a share now, at 1.30, that you can't sell until February 19, 2021. You never sell shares.  Why are you not buying up all these cheap shares via puts!?  Actually...why am I not doing that  |
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Post by mytakeonit on Sept 30, 2020 13:30:58 GMT -5
Because I can ... remember that I bought a ton of shares when it dropped to 80 cents and started climbing back up. Everyone has a different plan and I didn't want to deal with options and expiration dates. I bought excess shares to load up my daughter's accounts. When the run up starts, I will have to decide when to sell a few shares to cover this expense. That will be a difficult decision to make on the when part. But, that's mytakeonit |
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Post by cretin11 on Sept 30, 2020 15:51:37 GMT -5
Cash tied up So it's like buying real shares, but with an expiration date. But, that's mytakeonit So that theoretical .20 to buy shares for 1.50 is a lot like buying a share now, at 1.30, that you can't sell until February 19, 2021. You never sell shares. Why are you not buying up all these cheap shares via puts!? Actually...why am I not doing that casualinvestor, that is correct. If you're certain you will want the shares anyway, then selling puts is an easy way to lock in a discount. If share price exceeds your chosen strike price when expiration happens, you get to keep the premium you made. Hard to argue with that strategy. Where you can get in trouble is, as baba said, you sell a bunch of puts and grab those sweet premiums. If your strike price is way below the current share price, you have that "buffer" or "cushion" to make you feel safe. But if the share price plummets before expiration date, you get stuck with the shares. Back in the heyday, around times of AdComms and FDA approval decision, the premiums were insanely high. Selling puts generated huge infusions of cash, but when things went south, all that cash and much more was needed to make good on the contracts. Quite painful, and those shares today have a cost basis of $25, $30, $35, $40, $45, $50... you get the picture. Moral of the story, selling puts can be a valuable strategy for lowering your effective purchase price, but make sure your eyes aren't bigger than your stomach. Only sell puts if you're totally comfortable (or even desire) buying those positions when the day comes! |
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Post by sportsrancho on Sept 30, 2020 19:54:09 GMT -5
Great description.. I know somebody that sold puts all the way down after Sanofi dumped us and didn’t have the money to buy the shares.
No it was not me, I’ve only sold puts a couple times and that’s been on American Airlines. Because I really want the shares lower.
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Post by radgray68 on Sept 30, 2020 19:55:34 GMT -5
Selling puts it’s hard because you have to have so much cash in your cash account unless you use margin and I don’t like to do that. And that cash is tied up till the expiration date. That's what I came to dislike about selling puts. The cash is on hold the entire time. Unlike buying calls where you don't have to have a dime in the account until expiration. Listening to Mike here at oppenheimer and the other conferences, I believe we are ALL going to want to be LOADED with calls for the results of the pediatric trial. If Mike has set up the parameters as carefully as I suspect, then Mannkind could finally get the big boost they couldn't get with the last big trials. That's my plan. Until then, shares only for me. When it comes to Mannkind, that is. All other stocks are fair game. |
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Post by sportsrancho on Sept 30, 2020 19:59:04 GMT -5
Selling puts it’s hard because you have to have so much cash in your cash account unless you use margin and I don’t like to do that. And that cash is tied up till the expiration date. That's what I came to dislike about selling puts. The cash is on hold the entire time. Unlike buying calls where you don't have to have a dime in the account until expiration. Listening to Mike here at oppenheimer and the other conferences, I believe we are ALL going to want to be LOADED with calls for the results of the pediatric trial. If Mike has set up the parameters as carefully as I suspect, then Mannkind could finally get the big boost they couldn't get with the last big trials. That's my plan. Until then, shares only for me. When it comes to Mannkind, that is. All other stocks are fair game. I can’t wait! You know my plan, load up before the run-up to TrepT FDA approval. |
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Post by matt on Oct 1, 2020 8:13:04 GMT -5
I can’t wait! You know my plan, load up before the run-up to TrepT FDA approval. Just make sure you take your profits when you can. The big bumps that accompany most biotech approvals do not last for more than a day or two, sometimes only hours, so the winning strategy is almost always to load up at lower prices in anticipation of the event and unload into the news wave. If you are still optimistic about the approval, you can normally reload at a lower price in the following weeks. This is probably doubly true with TreT because the drug is already out in the market. Unlike a truly new drug for an unmet clinical condition that creates instant demand, TreT is an alternative formulation that will take a few quarters to catch fire as patients are switched over. |
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Post by mnkdfann on Oct 1, 2020 9:22:19 GMT -5
Cash tied up So it's like buying real shares, but with an expiration date. But, that's mytakeonit So that theoretical .20 to buy shares for 1.50 is a lot like buying a share now, at 1.30, that you can't sell until February 19, 2021. You never sell shares. Why are you not buying up all these cheap shares via puts!? Actually...why am I not doing that I just sold 10 of those suckers for 0.25 apiece. $250 to me. Chump change, but let's see how it goes. |
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Post by sportsrancho on Oct 1, 2020 11:12:39 GMT -5
I can’t wait! You know my plan, load up before the run-up to TrepT FDA approval. Just make sure you take your profits when you can. The big bumps that accompany most biotech approvals do not last for more than a day or two, sometimes only hours, so the winning strategy is almost always to load up at lower prices in anticipation of the event and unload into the news wave. If you are still optimistic about the approval, you can normally reload at a lower price in the following weeks. This is probably doubly true with TreT because the drug is already out in the market. Unlike a truly new drug for an unmet clinical condition that creates instant demand, TreT is an alternative formulation that will take a few quarters to catch fire as patients are switched over. Right, I wasn’t even planning on holding through approval because so many times launches get shorted. Plus the profit taking on the approval itself. I figure I’ll have the option for 7-8months. |
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Post by mytakeonit on Oct 1, 2020 13:11:51 GMT -5
So no one is even looking at the "double digit royalties"? MNKD isn't only about Afrezza or TrepT FDA approval. Oh well And sports was into American Airlines ... because maybe she was a stewardess? Hmmm ... Reading between the lines can be dangerous. But, that's mytakeonit |
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So it's like buying real shares, but with an expiration date. 
Why are you not buying up all these cheap shares via puts!? 
