4 ms·
Put the money into a brokerage account (I would do optionshouse.com) and purchase Call options for a biotech company with impending FDA approval. THIS IS WHAT
by jeffepp 16y ago
Put the money into a brokerage account (I would do optionshouse.com) and purchase Call options for a biotech company with impending FDA approval.
THIS IS WHAT I WOULD DO:
Consider ARNA Jan 11 calls (4 strike). Currently at ~1.55
The stock will need to be around 15-16 for you to earn 10x.
The FDA decision should be around October 22, 2010
If they are denied you lose all. If they are approved, you have a chance to be pretty close to 10 bagger
Everyone DO YOUR DD before investing
- mistermann 16y ago> If they are denied you lose all. I can vouch for this from a personal (similar) experience: http://finance.yahoo.com/q/bc?s=SSS.V&t=3m http://finance.yahoo.com/q/bc?s=SSS.V&t=3m You don't even need FDA rejection to lose your shirt, in this case it was an unprecedented (compared to prior trials) improvement of patients in the placebo control group. Sometimes in investing it seems that anything that can go wrong, will go wrong.
- jeffepp 16y agoThis is certainly true. There are many, many risks. Without getting into too much detail: - delay (past Jan 11 expiration) - denial - partial approval All possible outcomes that would wipe out the $1,000. I would still consider this option superior to gambling or any illegal activities -- but that is a personal choice.
- uptown 16y agoFlip side of the coin: http://finance.yahoo.com/q/bc?s=SSS.V&t=2y&l=on&z=m&q=l&c=NNLX http://finance.yahoo.com/q/bc?s=SSS.V&t=2y&l=on&... That said, I wouldn't recommend using the stock market as the best way to turn $1k into $10k.