Hey regardless of what plans each of us has with our investment, long termers should meet up/catch up on holidays and whenever, on the MNK board, or the board of MNK's purchaser ie: MYL.
Sentiment: Strong Buy
and that accounts for the spread narrowing so much this afternoon, I closed all my MNK short calls around noon and sold all my qcor stock and covered all puts down only to 100 oct 75 calls Qcor and 100 oct 65 puts Qcor booked over 100k on this play in several months. Been a good trade, hope argopuche is doing well also.
ribeard - Congrats on the QCOR profit but with the proxy out, special meeting date announced, earnings around the corner and the institutional guys stepping up I think it may turn out that you closed everything out to early. As I've stated many times, I expect the gap to close as we get closer to the closing and QCOR/MNK strong BS and free cash-flow to continue to slowly and steadily drive the stock prices higher. The large short position in QCOR and MNK is only going to be a catalyst higher as the shorts will continue to try and figure out various strategies to close their positions without causing the price to move to much higher. Bottom line QCOR/MNK is going to be a very strong company going forward. I still like staying long and having protected my downside against a disaster scenario. It allows me to sleep at night and not worry about closing the position out with money still on the table. Slow and steady! Good luck to all!
Hi ribeard6734 - Glad to hear you did well and closed everything out. I'm staying long QCOR as I've been for many years (avoiding all the noise and stupidity) and have the put options to protect my downside in the case of a disaster. I'm still confident that both QCOR and MNK will trend higher into the deal. The shorts are making their last stand (Raven, Citron, NYT, etc…) but in the end as I've said consistently strong balance sheets and growing free cash flow is always going to win out. Cash doesn't lie and QCOR is going to deliver more than $400 MILLION of free cash flow this year. I'm glad you've done well and wish you the best of luck on your next stock venture. I'm sure you've been following GILD, FRX (deal done with ACT), CELG, JAZZ, etc., etc., etc. Slow and steady! Good luck to all!
If others were following your play and closing out their arbitrage spread, wouldn't MNK spike today? I would have to guess that the MNK pps dipped due to more shorts positions being put on to keep the Q pps down?
I'm new to this kind of trade and just trying to understand what may happen with the two stocks over the coming days and months so that I don't make any dumb moves. Either way I plan to hold through Q2 eps. Any thoughts you have on how closing of the arbitrage spreads that were put on could effect the eps would greatly appreciated! I'm confused, because closing your short MNK would require a share purchase and selling your Q shares would increase available shares (for shorts to cover).