NaughtyPines

SOLD ACAD APRIL 15TH 11 SHORT PUT

NASDAQ:ACAD   ACADIA PHARMACEUTICALS INC
Credit goes to TurboTech for this particular idea, which passed under my radar ... .

With an implied volatility rank of 89 and (yes, your eyes don't deceive you) an implied volatility of 259%, ACAD             is ripe for premium selling.

Here are the metrics for the setup:

ACAD             April 15th 11 short put
Probability of Profit: 78%
Max Profit: $111/contract
Buying Power Effect/Max Loss: ~$990 (In this particular case, your max loss (which would occur if the stock went to "0") is the value of the strike ($11) minus the credit received for the short put ($1.11) or $9.89 times 100 shares or $989.

Notes: I'm going to keep an eye on price here and may look to take it off at something exceeding 50% max if I can. It is, after all, $9 below current price and some $4.50 below the 52-week low ... . I put this on earlier today for $112, but it's possible that you could get a fill for more than that with this little down turn we had today.
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