Sunday, February 21, 2010

Intermune March Covered Call Volatility

I am looking at ITMN again this year, those that remember last year, this made us a ton of money...  Current volatility is high given the March 9 FDA discussions.

Support for ITMN is in the $10 range and with 15 Call premiums over $4 the risk of losing on this trade is very low...

Analyst have a $25 target and well over 50% belief the FDA decision will be positive.

I will be looking for a pullback to 15 or below and sell the March 15 and/or 17.50 calls.  Volatility prevents a good married put strategy this time...

More to follow...

Happy Trading

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