Thursday, April 7, 2011

XNPT - CoveredCall position

Now that the drug is approved, there will be more upside. There are sizeable milestone payments due. Based on the reports/messages it is valued somewhere around 23.
But I think it may not see $23 very soon. It may take some time. The approved drug will be sold only from June.
 http://www.beaconequity.com/xnpt-on-fire-xenoport-is-back-on-the-wave-of-horizant-approval-2011-04-07/#ixzz1IqdYdZUb

Initiated a covered call position.
WBT BOT +1 COVERED XNPT 100 MAY 11 11 CALL/XNPT @9.545 ISE
If this is called, will make $140 after commissions(14% profit). If not called, it will be 7% profit and then I proceed to sell another call.

Calls in MDVN also look interesting. Need more capital for MDVN, so I settled for XNPT.

4/19/11
Bought back the May 11 call for 0.05.  and sold another call.
WBT SOLD -1 XNPT 100 JUN 11 10 CALL @.30 PHLX (commision $1.5)
This will further reduce my cost.

Will somebody buy this company? Lot of Biotech mergers and aquicitions going on.

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