ARNA

Longtime readers know I have been a fan of Arena for years.

I am absolutely unhappy with the stock price and have been for years. They were screwed over by the DEA for not getting it scheduled for almost a whole year after Belviq's approval. That killed a lot of momentum. The attitude of doctors for "diet and exercise" and avoiding a pill hurts too, but that is slooooowly changing.

Today's price is about $4.55. And although I am still a fan of the company, I don't see blockbuster price moves soon. So I would be comfortable with selling calls against a position at this point - I want to be long the stock but I think July $5s (if you can get $.35 for them) sound about right. Maybe even the Oct $5s, with the idea of buying them back with some probable summer volatility). On the first you get almost 8% return for 3 months, with another 9% if exercised (all minus commission, of course).

2-5% a month, on a "boring" stock. :-)