(Total Views: 432)
Posted On: 03/07/2020 10:35:40 AM
Post# of 153926
This is an interesting point.
My gut is that people have their own acceptable price based on the size of their position - bigger position would take a lower price, smaller position needs a larger multiple to “hit it big”.
I’m a “bird in the hand” type guy and I’d take $15-$20 in a BO and never look back. Not that it couldn’t be worth a lot more - but you never know what could come out of the blue in a field as competitive and fast changing as biotech / pharma.
The other approach is to simply take some off the table at certain prices and let the rest ride as a call option.
I look forward to having to figure out this great “problem” in the future
My gut is that people have their own acceptable price based on the size of their position - bigger position would take a lower price, smaller position needs a larger multiple to “hit it big”.
I’m a “bird in the hand” type guy and I’d take $15-$20 in a BO and never look back. Not that it couldn’t be worth a lot more - but you never know what could come out of the blue in a field as competitive and fast changing as biotech / pharma.
The other approach is to simply take some off the table at certain prices and let the rest ride as a call option.
I look forward to having to figure out this great “problem” in the future
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