Went long a handful of Jan 2016 $30 calls today at $6.26 and will add if the stock weakens. Seems like a good bet.
FWIW I bot shares at 32.50 average this morning. The last of my shares were called away last option expiration and for that effort I saved myself $3 which I guess is better than a poke in the eye with just about anything including a pointed stick.
The so-called 'disappointment' at $123 million is stupid.
8:04 am AbbVie: CHMP grants positive opinions of AbbVie's Viekirax + Exviera for the treatment of chronic Hepatitis C in Europe; major regulatory milestone achieved toward approval in the European Union (ABBV) :
The European Committee for Medicinal Products for Human Use of the European Medicines Agency has granted positive opinions for AbbVie's (ABBV) investigational, all-oral, interferon-free treatment of VIEKIRAX EXVIERA with or without ribavirin for patients with genotype 1 and genotype 4 chronic hepatitis C virus infection.
The European Commission will review the opinions and make a final decision sometime in the first quarter of 2015.
The marketing authorization applications were submitted to the EMA on May 6, 2014 under an accelerated assessment, designated to new medicines of major public health interest. Review of the MAAs is being conducted under the centralized licensing procedure, which if approved will result in marketing authorizations valid in all 28 member states of the European Union, as well as Iceland, Liechtenstein and Norway.
I bought some ABBV Jan calls but thinking of selling them on this news.
Not bad, but not record breaking. I guess I could say the market wasn't wowed but this stock almost always sells on the news.
Not a pretty ending for them. Traded as high as 103.50 today. I was long some about six weeks ago and made a $4 profit selling them at $16. Better lucky than smart.
The buyback is public knowledge. If you can't stand the heat get out of the kitchen.
I brought this up last week when I pointed out the ABBV Jan $60 calls were only priced at $5 (just $1 over the trading price of the shares at the time). That isn't exactly super bullish eh?
On the one hand that is a lot of money. On the other hand that isn't a lot of money. If Gilead thought it was a good deal I think it is a good deal.
To underscore the silliness of the ABBV "threat" take a look at the Barron's article re: worst case scenario. Even though the authors don't buy that thesis they still come up with huge total franchise Hep C sales of approx $12b next year.