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  1. Default MNKD long or short

    Has anyone done any research on MNKD? I own this stock and have done OK. Is it a good long term buy or should I dump it? I am up 20% ass of today.

    Thanks for sharing your thoughts

  2. #2
    AillyLinge Guest

    Default

    Nobody knows nuthin'
    I'm guessing it will get approved so I bought a butterfly at the expected move on the upside a month ago. It's almost already there....sheesh.
    Maybe I'll buy another a few dollars up.
    Whether now is a good time to get out can only be validated by the market.....unless you got one of those magic 8 ball thingys.

  3. #3
    Airbladeked Guest

    Default

    Did you have an exit strategy for the event of losing money?

    If so then you planned on losing but not on winning. hmmm

    If you had neither then your just waiting for your emotions to guide you.

  4. #4
    Airbladeqvs Guest

    Default

    Obviously I am very new to this so any guidance would be appreciated. I do have a sell order if iit goes to 9$ but if you have a better strategy I would like to hear it.

  5. Default

    Personally I don't like stops and I don't think any stock is or is not a good long term investment. Because of the cyclical nature of price movement. Especially a pharmaceutical like MNKD as you are one bad FDA review away from a 50% loss. And it will probably happen off hours or during a trading halt so all your stop will do is trigger a sell at whatever it opens at.

    One question to ask yourself is "If you didn't own it would you buy it here and hope it goes higher?". Every day you hold it is a day you bought it. Nobody knows what it's going to do. They have an FDA announcement coming up in July which could create movement either way. If the news is bad you could easily see this drop to 5-6$ or less a share before you can hit the button. If the news is good....then up.

    The strategies available to you really depend on your account permissioning (can you sell options, covered calls, etc), the size of your position vs the rest of your account, or your overall risk tolerance.

    But ringing the register for a 20% gain is not a bad day. Think of it this way.....at entry if you thought the chance of getting off a 20% gain were pretty slim....what do you think they are of you getting 30%? The probabilities still just have a 50/50 shot at it going higher.

    A better way to create a stop without creating a stop is to sell a call at the strike price you want to stop at. (sell one call for every 100 shares you own creating covered stock) The credit received will reduce your break even by the amount received. Then if the stock gets killed you have some buffer. If it falls past your new break even then you may have a chance to buy them back cheap (I look for .05) and/or roll them either to a new strike and/or a new month and collect more premium to further offset losses....and keep doing that until I get my damn money back or more. If it keeps moving up you have choices also. You can let the calls go into expiration at which time the shares will get called away and you will be paid the strike price and get to keep the premium collected....or a few days before expiration you can roll the calls out to the next month (at the same strike or above for less credit). The potential problem I see with MNKD is that if the open interest in options drops off after the FDA news the markets (bid/ask) could get really wide. But that's all part of the game...right?

 

 

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