Showing posts with label SVNT. Show all posts
Showing posts with label SVNT. Show all posts
Sunday, December 16, 2007
Options Update: Savient (SVNT) (again)
Whatever news Savient (SVNT) released on Thursday ended up being good news. I only skimmed the release and saw something about gout. Gout didn't seem to be a big deal in the episode of House M.D. that it played a role in. Oh well, the important thing is that SVNT is up to $18.90, which is well above the $12.50 it needs to be at in order for my shares to be called away and for me to be done with this. I don't particularly like being invested in a company I know nothing about. But for a 25% return in a few weeks, I'm willing to make an exception every so often.
Tuesday, December 11, 2007
Options Update: Savient (SVNT)
So, it's been awhile since I've updated things on the financial side. I realize it's not anything people read in detail, but tonight I have nothing else I can write about.
So, if anyone happened to check up on Hythiam (HYTM), they'll quickly realize that it is far below my $5.80 break-even price. Yes, I seem to be losing money on that. But, this hasn't stopped me from experimenting with highly volatile options writing. Enter Savient, another small pharmaceuticals company. They apparently have some data coming out sometime in December, but I have no idea when. No matter when the data comes out, though, it is causing the implied volatility to be in the 220% range, which is ridiculously high. I bought 300 shares at $12.10 a couple weeks ago and was able to sell 3 covered call options for $2.60 each. Thus, I made roughly 21% for the month of December.
It is possible that whatever news is coming out will be negative and the underlying stock price will plummet, but there is more call interest than put interest, and I do have 20% downside protection. Plus, the stock price has reached $15.40 today, so any plummet starts from a profitable position. I see it as much more likely that my shares will be called away at $12.50 and I will be done with the matter. Of course, now that I've said that, the exact opposite will happen, as with Hythiam. I should learn to keep my fingers from typing such things. Well, wish me luck.
So, if anyone happened to check up on Hythiam (HYTM), they'll quickly realize that it is far below my $5.80 break-even price. Yes, I seem to be losing money on that. But, this hasn't stopped me from experimenting with highly volatile options writing. Enter Savient, another small pharmaceuticals company. They apparently have some data coming out sometime in December, but I have no idea when. No matter when the data comes out, though, it is causing the implied volatility to be in the 220% range, which is ridiculously high. I bought 300 shares at $12.10 a couple weeks ago and was able to sell 3 covered call options for $2.60 each. Thus, I made roughly 21% for the month of December.
It is possible that whatever news is coming out will be negative and the underlying stock price will plummet, but there is more call interest than put interest, and I do have 20% downside protection. Plus, the stock price has reached $15.40 today, so any plummet starts from a profitable position. I see it as much more likely that my shares will be called away at $12.50 and I will be done with the matter. Of course, now that I've said that, the exact opposite will happen, as with Hythiam. I should learn to keep my fingers from typing such things. Well, wish me luck.
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