NaughtyPines

TRADE IDEA: RTRX COVERED CALL

NASDAQ:RTRX   RETROPHIN INC
This is a bit pricier than I'd like to go with a covered call, particular in biotech, which can implode on you dramatically if there is a clinical trial failure ... . Nevertheless, here's the metrics on this little fella:

Buy 100 Shares at 16.42
Sell Oct             21st 17.5 call
13.77 db             at the mid
Max Profit: $373
ROC: 27.1%

Notes: There may be premium to be sold on the put side, but I'm looking at off hours quotes here, so it's hard to tell how wide the bid/ask on those will be during regular market hours ... .
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