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June 17, 2009 1:58 EDT Related Symbols: MYGN
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
Recapping Myriad Genetics
Recapping Jim Cramer’s Myriad Genetics (MYGN) Pick and Corresponding Option Plays
June 17, 2009
Mad About Options takes a look at the stocks getting coverage from Jim Cramer and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick – Myriad Genetics (MYGN)
In the April 1 broadcast of Mad Money, Jim Cramer told viewers that “Myriad is a buy on any pullback.” In the past two-plus months, MYGN shares dropped to $34.82 from$45.07, making this a 22% loser for Mr. Cramer and MYGN bulls.
Bullish Option Traders:
Option traders who were similarly bullish on MYGN sold May 45 puts for $3.60 per contract, therefore they collected that amount on this trade. These puts expired in-the-money, so these traders got assigned and paid $41.40. This trade was a lower of $6.58 with the stock down $10.25.
Bearish Option Traders:
On the con side, investors bought Aug. 57.5 puts for $13.70 per contract and sold Aug. 45 puts for $5.60 per contract, paying $81.0 for the trade. That spread is now marked at $10, making this trade a winner of $1.90 with the stock down $10.25.
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