Options expiration fallout

The composition of the Port has changed dramatically from just a couple weeks ago.

We bid adieu to Seattle Genetics (SGEN) last Friday, as I had sold $17.50 calls and it closed at $19.50. Since I bought it 3 1/2 months ago at $15, and sold $1.25 worth of premium I can't complain too much with the 21% total return.

This morning I took advantage of the cash on hand, buying an old friend and a special situation.

The Port now owns Dendreon (DNDN) again, at $38.16. I did, however, sell July $40 calls, expecting a lift from the CMS coverage and the upcoming Seal Beach plant approval.

I also bought a second load of Pharmathene (PIP) (6,000 shares at $2.42) and sold 60 July calls at $2.50. Those calls, however, had a premium of $0.30!! That is a 12% premium for one month... and too much for me to resist in the Port.

Notably, I also bought some PIP for myself in my real money account this morning. I did not sell calls against these.

I'm down to $4,400 cash in the Port, so until I either sell more calls or liquidate some stock, I'll be holding the following:

Shares .. Ticker.. (calls sold)
1500 ARQL (0)
1200 BTX (0)
2600 CLDX (0)
9000 CLSN (0)
1600 DCTH (0)
300 DNDN (3)
1100 EXEL (0)
2000 MITI (0)
2000 NBIX (20)
7000 NNVC (0)
2500 PIP (0)
6000 PIP (60)
1600 SGMO (0)

Regards,
Trond

Port 24 update

With the cash from the recent exercise of ONTY burning a hole in my pocket, I had some decisions to make.

NBIX is trading at a good price for a buy, but I already have nearly 10% there.
I was tempted by some more DNDN but I think this summer will see a better buying opportunity.
CLSN is a recurring temptation too, but I have the largest position there (and in my real money accounts) so I'm avoiding that too.
LXRX was also a possibility, but they are not optionable, and I also own NNVC in the Port that does not trade options.

So I decided to buy 2500 PIP and 1500 ARQL.

PIP is embroiled in a lawsuit against SIGA for licensing rights to a drug. From my readings it appears they have a very reasonable chance to win here - at $3.70 this is going to either be cut by a quarter or nearly triple. Much riskier than I typically would want for the Port, but I like the odds and also own this in real money accounts. You can research recent articles by James Altucher about this stock.

This is the second appearance by ARQL in the Port24. In September of 2008 we bought it at $2.91 and then eight months later said adieu to it at $4.43. Now I'm buying again at 6.70, in the expectation of a decent runup through the fall for trial results next year.

Surprisingly, I am not selling any calls right now. The premiums just are not there - we actually are wanting some shakeups in the market - volatility will move the premiums up.

Still have $9,599.35 in cash, and the positions listed below. I've dropped to a 17.5% annualized return, but at least against a negative 0.6% comparable to the S&P and a 5.6% against the Nasdaq.

2600 CLDX (0)
1200 BTX (0)
2000 NBIX (0)
7000 NNVC (0)
1500 ARQL (0)
1600 DCTH (0)
3600 PZG (0)
9000 CLSN (0)
2000 MITI (0)
800 SGEN (8)
2500 PIP (0)
1600 SGMO (0)