Friday, July 24, 2015

Closed Out Hospira / Portfolio Update

I closed out my short Put positions in Hospira (Ticker: HSP) this week. I generated a decent gain and decided it was a good time to reduce my risk a bit. This was an unhedged (naked) position so if there are any hiccups with the US or EU antitrust regulators, I would be in a little bind. On the other hand, I continued to build a short Put position in Receptos (Ticker: RCPT) and I believe this deal will close rather quickly without any antitrust issues.

I haven’t done this for a while, but here is an overall snap shot of my current non retirement portfolio holdings and the percentage weighting:


At July 28, 2015, Anonymous Anonymous said...

TEVA/ASPX deal closed in 37 days. Is it the same time frame for CELG/RCPT deal? where can i get more information on M/A pending and regulatory approvals?

At July 28, 2015, Blogger Money Turtle said...

Celgene commenced the tender offer today and will expire on 8/24. This deal should close by the end of August.

There are really no free sites that dig up regulatory approvals / timelines for you. This is information that you will need to dig up yourself (going to the filings and regulatory sites) or pay a good amount to obtain. is a good site that provides this type of information, but they do charge a bit for this info.

At July 28, 2015, Anonymous Anonymous said...

You think there is any chance of an overbid?

At July 28, 2015, Blogger Money Turtle said...

The options prices are indicating a higher bid, but I’m not betting on one. So no, I don’t think there will be a higher bid for RCPT.

At July 28, 2015, Anonymous Anonymous said...

Why a 5 dollar spread if it is closing by end of August?

At July 29, 2015, Blogger Money Turtle said...

The spread (~ 2%) is probably attributed to a potential any clinical events that could cause a material adverse scenario. From my experience this type of spread is fairly typical in a biotech buyout.


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