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IBDvalueinvestin (98.91)

FDA approval for QCOR next Week



June 03, 2010 – Comments (3) | RELATED TICKERS: QCOR.DL

Chances are looking extremely good for an FDA approval decision after the FDA panel gave their all ok sign on May 6th for Approval.

3 Comments – Post Your Own

#1) On June 03, 2010 at 12:34 PM, IBDvalueinvestin (98.91) wrote:

How to play this?

Buy QCOR shares, then buy equal amounts of June $10 Puts as Insurance. 

Note 1000 shares = 10 Puts

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#2) On June 03, 2010 at 12:43 PM, IBDvalueinvestin (98.91) wrote:

Currently the bid on $10 June Put is .60 and the ask is .80

So 10 PUTS would cost you anywhere between $600 - $800 dollars but you get the safety on your 1,000 shares just in case by some odd chance they don't get approval which is a tiny chance.

Approval should send the stock up 20%-30% in my opinion so your 1,000 shares should net $2,000 to $3,000 minus the $600-$800 Put insurance.  

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#3) On June 03, 2010 at 1:03 PM, mhy729 (30.37) wrote:

It would be interesting to see how your idea plays out, and how it would've compared to a similar strategy for DNDN (recently approved) and ITMN (recently rejected).  I've no experience with options, and only have the most basic idea of how they work.

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