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  • MannKind Trivia: Who Likes Word Problems? [View instapost]
    OK, I see what you mean. With MNKD at $2.62 and the Jan15 5C at $.65, I come up with $6.66. Anything higher and the call increasingly outperforms due to the leverage effect.
    Interesting, hadn't thought about it that way before.
    Mar 4, 2013. 07:29 AM | Likes Like |Link to Comment
  • MannKind Trivia: Who Likes Word Problems? [View instapost]
    I must be missing something, because you state these are bought calls, and therefore a long position. What defines a "best" trade? As long as the calls are above $5 at expiration they are in the money, $5.64 is breakeven, but the pps could also be much higher. Theoretically there is no limit, so how do you call one price better than another? Unless the first poster is correct and you are referring to tax consequences, which may well be different then they are now. I'll say a pps of infinity is the best trade price at exp; of course whatever the tax percentage is, applied to infinity is also infinity, but that will still leave me with infinity left over.
    Feb 28, 2013. 06:55 AM | Likes Like |Link to Comment