Thoughts on IMUOD?, page-21

For those with an interest and appetite in options … this is what I have been doing to free up funds:

1. selling some IMU (circa 54c-60c)
2. replacing with IMUOD (circa 23c-31c - half the price of IMU) (listed IMU options); and
3. buying RAC with the difference.
(Alternatively you can buy 2x IMUOD)

My rationale:

- I have been a long and strong holder of IMU, so taking some profits off the table and free carry is sensible.
- keep the awesome upside by holding IMUOD options, but now I have limited my downside (as I am free carry). So when and if IMU hit $1, $2 and beyond, I am covered on the upside.
- I believe IMUOD is undervalued and has the best risk/reward exposure to IMU.
- diversify with another impressive Aussie biotech (RAC).
- I argue that RAC (at MC $500m) can 5x or 10x easier and faster from here than IMU at $3b MC.
- Strengthening and balancing what I call my AUSSIE BIOTECH BARBELL STRATEGY.