So glad I sold my stock yesterday at a gain - options are wiped out though for a loss.
Lessons learned from CLSN
(1) Don't put all your eggs in one basket.
(2) Look at the cost of a call / put strategy on a binary event such as this... If I had done this I would have broke even on the fall. ie always hedge. I thought about doing this - wish I had.
(3) Biotech is risky - don't put more than 5% into biotechs - It may not be sexy to invest in companies such as WM, EQR, DTE, WMT... etc... but I am still making money and I am not swayed by binary events. And over time, your cost basis reduces and you continue to make money.
(4) There is something to be said about the Feurstien rule - if the big pharma believed in the science, this wouldn't have been a small cap stock at phase 3.
That said - I lost 1.6% today... which is easily recoverable - I can only hang my hat and wish comfort for those that lost so much more.
Moving forward - we can all just remember that investment rules are almost always a good idea... yes you will miss out on some opportunities... but you will also miss out on losses such as today as well. I was extremely bullish on CLSN - had I not followed my rules I would have lost so much today...
For those that bet the farm - I have been both poor, and rich, and poor, and now somewhere in the middle - don't give up. You may realize that real wealth is in the relationships you have with the people that are around you.
And for those that 'still believe' in CLSN - don't be naive - this stock is worthless and you should get out.
Disclosure - I have Feb call options which are now worth 0.