Sold Shutter Fly and TRW Automotive
My Journey Towards Financial Nirvana.
September turned out to be ok considering the market volatility. My positive performance can be attributed to the gains in the following positions: Intermune (Ticker: ITMN), Veterx Pharmaceuticals (Ticker: VRTX) and Apple (Ticker: AAPL). It’s been a very challenging year unlike last year where just about anything you touched made money.
Roche (Ticker: RHHBY) completed its acquisition of Intermune (Ticker: ITMN) today. I’ll have to wait until the October options expiration to close out the position. I sold the January 2016 $70 Puts at an average price of $0.65. I generally like to write Puts on these tender offer plays as it offer a relatively quick closing with minimal risk. Writing Puts can be risky so that’s why I’ll only enter these positions after an announced merger agreement. It’s all about the odds… just like poker.
Roche’s (Ticker: RHHBY) acquisition of Intermune (Ticker: ITMN) is pretty much a done deal now. The company received all of the required regulatory approvals as of yesterday as we head toward to expiration of the tender offer on September 26th. I’ll most likely hang on and let the options expire in October unless I see something more compelling to free up some buying power.
It looks like Roche’s (Ticker: RHHBY) acquisition of Intermune (Ticker: ITMN) has a good chance of being completed by the end of this month if all the regulatory approvals are received. The company has to obtain approvals from three countries. The required approvals and decisions are as follows: US HSR 09/17, Australia 09/22 and Germany 09/25. This tender expires on 09/26, the day after the receipt of the last regulatory approval. The spread is not wide enough to play via common so I’ve been selling the January 2016 $70 Puts.
August certainly didn’t feel like a positive month, but it was actually a decent month. Looking at my portfolio, the majority of the gains was attributed to the closing out of the Idenix short Puts. Apple (Ticker: AAPL) continued to act strongly as it heads into the September product announcement. The remaining positions pretty much held their own and did not have a significant contribution to the overall portfolio performance.
I’ve been striking out a lot this year on some special situations / arb plays. The averages will eventually catch up to you, but I’m patient and looking out for the next target. I had a good position in the Intermune, Inc. (Ticker: ITMN) common around $51 and sold for a small quick profit. You know what happened next… Right now, I’m playing Roche’s (Ticker: RHHBY) acquisition of Intermune by selling the $70 January 2016 Puts. This deal should closely fairly quick as Roche initiated the tender offer today.