Yeah, I hedged it by selling 7/12 of my shares in my IRA accounts first and waited on the balance in my taxable account. It's a lot of $ to re-invest, so I felt that it was best to leave for the FDA decision (educated risk) If not approved, I felt it would only be a temporary setback.. I am also planning to use some of my taxable shares for charitable contributions. Saves on taxes.
That's why on trades like this I tend to go with deep ITM leaps. Much less premium involved and adequate time to let the deal close. Leverage is a two-edged sword in buyout situations when you work with options.
The premium went away as soon as the deal was announced. As you said, everyone will be made whole with respect to the delta between strike price and $46 pershare. I made out but lost the $4 premium I paid for the leaps.
not a bad gamble. option market is pricing in a higher bid and normally you dont see stock trade up to cash offer prior to finalization
One can always hope. After all, Pfizer has $33B cash and are looking to buy something...
Hmm it's up ~2% but I thought it would be more. Oh well, long-term is still been a fantastic stock for me, and the NPSP buyout is just icing on the cake.
blind to the world... but the brokers will take commissions on your trades anyway.
I suggested to those who wanted to keep exposure to Natpara to buy shares in SHPG. I will be surprised if SHPG does not trade significantly higher come Monday.
Correct. Accelerated expiry applies. ITM (In The Money) strikes will receive cash equal to the difference between the strike price and $46. OTM will expire worthless. Time premium across all expiry dates goes out the window... Wall Street thanks everyone for playing and have a nice day.
Approval looks solid. Less restrictive label than anticipated. I am happy with the $46, but likely worth more now. This stock has been quite the ride. I have gone from down $300 K to up $440 K. Many officers sold recently in the $30's as well. I did too as I watched them sell. We both missed out on opportunity. However, i learned a lot about the FDA process that I hope will be very valuable in the future. FWIW, take a look at KYTH. ADCOM Mar 9th. Potentially revolutionary cosmetic product.
great question...i have no clue..but would be nice to get a response...im in the same boat as you
Mute point. 91% of the stock is held by funds and institutions (per Yahoo Fin) they'll vote for it if the Board wants it.