Tax man is coming, and those with the naive HepC Rx sans IFN pair trade (Long $GILD / short $VRTX & $LGND) are cashing in. Over the last few month, we have tracked that as $LGND jumped, shorts just shorted more $VRTX and keep on the gas. But now it looks like $GILD is starting to roll, as both $LGND and $VRTX are getting big pops. Expecting this trend to last into mid Jan given the wash rule.
Bottom line? If we are reading the tea leave right and assuming no other news, $LGND should perform well right into JP Morgan in mid Jan.