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Shares of Star Scientific (STSI -8.6%) crumble with a new SEC filing out from the company...

Shares of Star Scientific (STSI -8.6%) crumble with a new SEC filing out from the company revealing it received subpoenas from the U.S. Attorney's Office in Eastern Virginia. (10-K)
Comments (4)
  • wineguy42
    , contributor
    Comments (37) | Send Message
     
    Ouch. If you really believe in this stock, you should be selling puts!
    19 Mar 2013, 10:32 AM Reply Like
  • thymara
    , contributor
    Comments (4) | Send Message
     
    while I love the product I think buying puts is more prudent in the short term
    19 Mar 2013, 12:25 PM Reply Like
  • thymara
    , contributor
    Comments (4) | Send Message
     
    while I use their product, and think it works, I think buying short-term puts might be more effective
    19 Mar 2013, 12:25 PM Reply Like
  • wineguy42
    , contributor
    Comments (37) | Send Message
     
    Well, if you sell puts, you take in some money, and your "risk" is that you buy STSI at a lower price tan it is today; but if you buy puts, you spend money, and only profit if the stock price goes down; as I said, if you like the stock, you believe it will go up.... and if it does go up, selling puts is profitable, but buying puts is unprofitable (assuming the same time frame).
    Since the majority of options expire worthless, I would rather sell an asset that will likely become worthless, than buy one.
    But more than one way to skin a cat I guess.

     

    BTW I haven't tried the product but hear good things. You have success with it I assume? Arthritis? I'm thinking of trying it.
    20 Mar 2013, 11:30 AM Reply Like
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