I am doing it slightly different, I am buying Qcor and selling OCt 70 calls on MNK that way when the merger goes down I will be in MNK at a cost basis on those i did today at 48.70 and 54 on those two weeks ago. If MNK is over 70 then I am out with a 20 plus % gain for 6 months or less. If not I own MNK at a very reasonable price.
today bougt QCOR 79.11 for 1270 shares and sold Oct 70 MNK calls at $4.70 on 11 contracts, I will get one dividend on Qcor and $30 per share and .897 shares MNK at or before merger and the 5170 I sold the MNK options
dr c6, we discussed this because Q4 drops back off only Q3 is high and Augustussam stated there was a milestone due from PAR at the end of the 180 exclusivity of $3M that was due before they changed it and went private with deal (undisclosed) that was due at FDA approval That makes more sense to me as they never know when ANDA approval will come and would not put it in estimates until it does. It is basically the only thing that can explain the huge increase in income for Q3 and I believe Augustussamoni to be correct and forthwright in his knowledge of the situation.
there is a tremendous spread for QCOR/MNK I would thing the arbitragers would be coming in before long I have already done 5200 shares of Qcor and sold MNK 70 calls to cover the stock I will get for 20% returns for 6 months or less or I will still own MNK at $50 cost basis
yes not much to say with the major sell off and my 25k shares but to wait and keep quiet until it comes back. Hoping for a nice pop tomorrow after some spectacular earnings and a lot of analysts eating crow, hope is eternal.
I totally agree this was so much more than even I expected and i was calling for $1.20 for the last month or two. Stock has been halted, will be interesting when it opens to see what it does. It could be substantial.
90Million shares short what a hurt for all those shorts. could be a billion dollar loss from the close of today
the same way you get HIV, sex and drugs and a few bad blood transfusions, hep C is easier to catch than HIV
the move breaks even at 48.85 on MNK, I didnt think I needed to protect that, it maxes profit at 70 MNK which is a 25% return including dividend which is tremendous for a 6 month play. If it doesnt make it to 70 then I will be in MNK at 48.85 cost basis and able to sell some more calls against my position. Please explain a way to make more than 25% on money invested in that time frame? I have done M&A for years and this is very decent for the current time frame and rates we are dealing with. I know I am capping my profit but it is a way to cover the downside also, I am not extremely greedy. but buying MNK for 48.85 is a deal today and that is my price basis at this point all above that to 70 is my profit. MNK will be trading at a 12 PE at the merger date if it is at 70 and that is extremely low PE so I really expect to get the 70, I thought about 65 calls and taking my cost basis another couple of bucks down but it reduced my potential return and I felt 70 was very doable.as people realize the PE that will be after the merger.
that would be less than a 16 pe at that price by year end counting all of europe revenue and other countries but not counting other drugs in pipeline.
no they dont let them get on computers and his english level is not that good. he may belong in a group home but is probably still living with his parents
muskyman, it is my largest dollar holding and along with this stock I expect both to make me a million dollars each before I get out. my target on GILD is 120 by end of 2015 AND my target for IPCI is $20 by end of 2016 so I am going to be around for a while unless they hit sooner. I need 115 on Gild and 14 on IPCI to make my money goals. I lightened up a little on HNR sold 1/4 of my position to lower cost basis in case deal didnt close but stock continues up. Sold a little SNTA but wanting to add back as well as BAC Did some more spreads on QCOR/MNK calls long Q short 70 calls on MNK
congrats Big Dog on that 11 call doesnt look like i get my 10.50, you are the winner this time but I would have preferred we both won (as in I got my 10.50 then you got your 11, lol)
averaging in on Qcor and selling MNK OCt 70 calls for a net cost on MNK of $51.50, great arbitrage situation here. break even at MNK at 51.50 max profit at 70 of 36% in under 6 months, those are excellent odds even at 65 MNK it will make 26% MNK at date of merger will be trading at a PE of less than 12 if priced at 70
yes and no, yes I am selling MNK calls in the amount of the MNK stock I will be getting from completion of the merger for my QCOR stock so I am arbitraging, basically locking in a profit as long as MNK is over $51.50 to a max of $70 on MNK which would be a 36% profit in 6 months, so actually I am betting just the opposite but willing to cut profits short for the downside protection. EXAMPLE
So far I have bought 6520 shares of Qcor which will receive 5848 shares of MNK upon completion of merger and I have sold 58 contracts of MNK Oct 70 calls at an average of $5.58 which will leave me with 48 shares of MNK when done if MNK is over 70. I want MNK to go over 70 , at 65 MNK will make me 26% for the 6 months (presently 63.43) If MNK goes sideways and is at 63.5 mid Oct I will make a 24% return, how many investments do you have that you bought today that will make you 24% if the stock price doesnt improve in next 6 months??