that explains alot , not only income but some protection. I wish my cost basis was in the neighborhood of yours, I would be selling those 90s also instead of 100s congrats on a long term patient investment.
I would agree this is definitely different than the false starts of before this has volume and is running, hopefully it takes us to 6 soon.
when i look at a comparative price chart between MNK and Qcor it seems they have moved pretty much in tandem with a slight increase in QCOR closing the premium down almost $5 on the merger price, I really dont understand your statements. Qcor has made me over 100k since 5 days after the announcement.
that has been working for you but it will bite you and take all your profits away one of these days. as qcor takes off you will be on the wrong side. what you are doing is shorting Qcor and think that is going to continue to work for you.
where have you been apachefogg, havent heard much from you for weeks. This time I think you may be right, but last time not, I traded this for a long time in a tight range and made 8k when you said it was breaking out, but this time I am holding for that break as it is definitely looking possible.
6 beautiful children who are conservative independently minded and work for a living and have given me 24 grandchildren. I have built many rental properties, raised beef and pecans go to wwwDOTrodneyspecansDOTcom an order some you have to replace DOT with a period for next fall as we are currently sold out
because he is a democrat politician plying to the stupid masses that dont know any better and will vote for anyone with a handout in their hand rather than good sense.
this is selling 27 times future revenue and that is way too high, take a successful earning company like GILD which is selling at about 7 times future earnings and you can see that this has no where to go but down once the hysteria and hype wears off. even if revenues greatly expand with all the competition the pirce can not.
with $1000 per pill I doubt there will be much inventory fluctuation, more hand to mouth distribution, Scripts do equal sales, what equals even more sales is those not reported and they are enormous here, vet, medicaid, prison, overseas. I look for earnings to have as big of beat this quarter as last.
I noticed those, someone has some serious interest, hopefully it leads to a little more activity monday, it was a little disappointing today was hoping for a 10 cent up move. Had some problems on a trade I put on still working with broker so I couldnt add anymore today on the slight dip.
I really dont believe all of it is arb, a bunch of arb moved to options yesterday on a $2.5 million option trade. I moved 500k from stock arb and did some option arb today. The option premiums expand the profit margin over stock. I never have really understood outright shorting, you get to pay interest on the loan of the stock however small or large that may be, any dividends that may come due and have to fight a market that is bent on going up. Seems like a real uphill battle with out knowing some inside information. Heck I buy a stock that beats earnings by 50% over estimates and it goes down, so obvious I dont know much(GILD). But today was a real decent day. arb doesnt short both so any short on QCOR would nt fit into arb long Qcor short Mnk that is the play to lock profits and worry less, but no home runs just steady and easy as long as she closes.
it was explained to you in detail, I cant make you understand what you fail to be able to do. But I do know this I closed out the positions at eoption today on 5200 shares
qcor and 46 mnk calls and after all previous losses netted a profit of $37700.00 and I still have 3920 more shares and 35 more mnk calls in another acct and as of today they are $33800 so had I closed them at the close today my total postition would be up 71500. The way I make money on rolling up is that the 65 calls went up more in value than the 70 which went up more in value than the 75 which went up more in value than the 80 had I held them and they allowed me to keep more of the price in Qcor So I made a little more than what I anticipated but closed to do the deal I outlined here and MOnday I will close the other stock account positon and book that 33800 or whereever it is and do some more of the option 3 leg strategy outlined usling the profit I made to fund most of it and reduce what little risk I had additionally. I spelled out the exact prices today so that you could go check to see that they were done. At least my tdameritrade acct would show the option sales prices and how many as they were done for all three legs Verification is key to you though you rarely admit when you do it. Had you done your idea you could not have cashed out anywhere near the profit I did today total net and might still be underwater.
I would rather like to know how the IRS lost all their computers with the leaders emails on them and then destroyed all the evidence so no one could look at it. Nixon couldnt do it why can Obama.
the positive is you would need less buying power. the idea on selling the QCor put at 65 is that it gets you $2plus and for QCOR to go that low the deal would have to fall through basically or MNK go to 39.02 at merger. at which point the world just exploded and we are all dead lol.
the mechanics would not I like the spreads but in my deal I am completely arbitraged the QCOR I will be buying on the calls I am selling on the mnk calls I have sold and you need to do 10 QCOR to every 9 MNK and that will leave you 3 shares short MNK to cover. Your deal is as follows using midpoints on bid/ask at close
put spread mnk credit 1.00 per share
call spread mnk credit 6.60 per share
call qcor cost 21.05
what most likely happens is will sell your MNK and you will own your Qcor so your basis in Qcor would be 75 +21.05-(6.6X.9)-(100X.9) or 89.21 with 14210 for every 10 Qcor and 9 MNK you do. this means to make 100% you would need Qcor to close at 103.42 or mnk to close at 81.85 I only need mnk to close at 75 to max and have a lower cost basis expended and I didnt use commissions on your deal You will break even as long as Qcor is 89.21 or mnk 77.16 while I make break even at 62.50 on MNK or Qcor at 86.06 I hope I adequately analyzed that for you. It is also hard to do spreads at midpoints it is usually less favorable. so that would make it less attractive also. The big boy that did the 2.5 M deal on this yesterday has me convinced and he probably has computers to do the figures rather than my back of the envelope.
write it off as a charitable donation it may save you a year of life and I know it will make the rest of us a lot of money. I remember how it ran up the last time you sold. I could sell 1/3 at those prices and have my balance cost basis $3.60 PLEASEEEEEEEE help us out
now he is down to $4, geez I wonder how many shares he has maybe I will buy them so he can leave, lol, If he had stuck to 15 I would probably be gone at 13 so he was going to outlast me at least on most of my stock. I gave you a thumbs up but dont do the kervorkian on us, just put him on ignore if it bothers you too much, i like to pull his string occassionally esp with politics, he has to love the way the IRS has lost all their papers on this Obama fiasco of using the IRS against conservatives. This is so much worse than Watergate that I would love to have Nixon back.
on my eoption acct got out of my qcor/mnk arbitrage made net 40k after previous losses on rolling up mnk short calls. did a more convoluted option strategy, bought QCOR oct 75 calls sold oct 65 puts and sold oct 75 MNK calls if you want to check did the 75 calls on QCOR at
21.88 (20) 22.08 (50) 21.94 (30) did the 65 puts at 3.18 (20) 2.98 (50) and 3.40 (30) did these as spreads at 18.70 (20) 19.10 (50) and 18.90 (30) sold all the mnk oct 75 calls at 8.80 (90) did this early this morning.