No. of Recommendations: 0
Hi Brettrkr

I have no opinion on ViaCell, but its options look to be very thinly traded. For example, I don't think any Feb 06 calls traded today, maybe only 1 contract in Feb 06 puts! And even the open interest in Jan $5 calls was only 31 contracts. In other words, you'd have to accept pretty much any price to trade more than a thousand dollars worth. Very illiquid, wide spread -- automatic 36% loss (1-$.80/$1.25) not including comm. between ask and bid. You basically have to go into the trade expecting to hold to the end, not much chance of a quick profitable flip with so much "friction".

Even though the stock price is moving up, the otion value isn't.

Yep, the time value can go down faster than the intrinsic value goes up.
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