IMS Health Trades
Here’s a quick review of my risk arb trades in IMS Health (Ticker: RX):
11/5/09 Bought 0.5X @ $20.78
11/5/09 Bought 0.5X @ $20.79
11/5/09 Bought 0.5X @ $20.77
11/13/09 Sold 0.5 X @ $21.27
11/17/09 Sold 1X @ $21.36
12/11/09 Bought 0.05X @ $19.92
12/11/09 Bought 0.2X @ $19.93
12/11/09 Bought 0.75X @ $19.88
12/17/09 Bought 0.1X @ $20.58
12/18/09 Bought 0.2X @ $20.41
12/18/09 Bought 1.2X @ $20.49
12/22/09 Bought 0.6X @ $20.93
1/4/10 Bought 0.1X @ $21.03
1/5/10 Bought 0.1X @ $21.02
1/5/10 Bought 0.1X @ $20.97
So far this trade has worked out well and plan on holding until the deal closes. Now I’m thinking about my next play after Sun Microsystems (Ticker: JAVA) and IMS Health closes.
posted by Money Turtle @ 5:21 PM
2 comments
2 Comments:
I too am in both the RX and JAVA trades. Another one I have been looking at is BHP/BBL pair trade. Historically BHP has traded at a premium to BBL, even though they both have the same underlying claim on company profits. The premium has changed over the years (since 2003 the premium has been between -1.2% and +22.6%), but BBL is currently trading at 19.3% discount to BHP. My trade thesis is to short BHP, go long BBL and unwind the trade when the BHP to BBL premium is somewhere closer to 10%-15%.
Thanks for the tip, it's definitely a trade to look into.
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