Wednesday, January 11, 2012

More Inhibitex

I sold my remaining holding in Pharmasset, Inc. (Ticker: VRUS) today and used a portion of the proceeds to pick up more shares in Inhibitex, Inc. (Ticker: INHX) at ~ $24 per share.

It’s been a wild ride in 2011 as I got hit quite badly with the special situation plays in Big Lots (Ticker: BIG) and Gen-Probe (Ticker: GPRO). I went in pretty big in those positions and got killed when there were no deals. That was definitely an unpleasant learning experience… I placed a too big of a wager on an uncertain situation. Fortunately, I managed to dig myself out of the hole and basically ended flat for the year. It would have been a great year if it wasn’t for those two big losers. Going over my trades, ~ 71% were profitable. I would like to maintain this goal going forward. You are never going to be 100% profitable on your trades. The end game is simply to make money.

6 Comments:

At January 20, 2012, Blogger needextra money said...

hi,
past couple of days INHX has been going down and lots of option activity in feb. any insight or thoughts.
thanks

 
At January 23, 2012, Blogger Money Turtle said...

I don't see much happening until BMY receives the go ahead from FTC. From my notes, I have February 7th as the HSR expiration date. This arb play will pretty much mimic Pharmasset, but with a bit more volatilty. I've been adding at the current levels.

 
At January 23, 2012, Blogger needextra money said...

thanks.. I did some covered call with feb 26, and the open interest has been constantly going up for a week. I am guessing they are anticipating a higher bid.

 
At January 25, 2012, Blogger Money Turtle said...

Thanks for the options info... I started selling some Feb 26 calls as well. Lots of people speculating on a higher bid.

 
At January 27, 2012, Blogger needextra money said...

hi,
even the may 20 puts are trading at a premium. sold some today, hopefully the deal closes and i keep the premium

 
At February 06, 2012, Anonymous Anonymous said...

Thanks for the tip on Inhx, got in a little after yourself, but was a very safe gain. Waiting for more gems.

Jim

 

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