Nitromed: heading for disaster

Sniper · #1 12-29-2005, 06:28 PM

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made my first options trade today. I bought June 06 puts on Nitromed (NTMD).

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What strike price?

#2 12-29-2005, 07:46 PM

12.5, at 1.95.

hedgeyerbets · #3 12-29-2005, 11:26 PM

curious why you didn't just short the sucker. hard borrow? worried about takeover? they have a blockbuster in development?

#4 12-30-2005, 02:13 PM

I think options offer a better risk/reward profile. I can get better leverage buying puts while limiting my downside exposure. I'm not too worried about timing: by June it should be known whether this drug is going to take off in the way they're predicting, and whether it will be covered by Medicare/Medicaid.