I wrote a long dated put.

music selection:  “No Woman, No Cry” — Fugees

Biogen (BIIB) has mostly traded sideways for years. I like its current prospects thanks to an Alzheimer’s drug under development.  The company also shares a 50% in the most likely leading competitor drug for Alzheimer’s plaque removal.

With volatility high, it is possible to write a deep out of the money put that earns an acceptable rate of return.  In this case, I wrote a put with downside protection of 26%.  I sold BIIB220121P00280000 for 52.10 a share.  The trade will be in force for 633 days and yields an expected 10.73% annualized.

I think I’m getting a good return and some upfront cash on a position that is highly unlikely to be assigned.

Devour your prey raptors!

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Write put Biogen (BIIB)

Never miss another opportunity to devour prey!

4 thoughts on “Write put Biogen (BIIB)

  • April 30, 2020 at 3:20 am
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    Reminds me of a TV commercial for the Nerf football in the 1990’s.

    “Go long. Reeeealll long!”

    Reply
  • April 30, 2020 at 8:44 am
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    I like your style, but I believe the Biogen JAN 2022 280 put that you wrote is “out of the money,” not “in the money.”

    I enjoy your blog. Nice call on NLY.

    Good luck on your trading!

    Stay safe my friend.

    Reply

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