Closed Out Alere
You can’t be 100% perfect in this risk arb game. There was news this morning on Alere (Ticker: ALR) in which the company received a grand jury subpoena from the DOJ for their sales practices in Africa, Asia and Latin America. Abbott (Ticker: ABT) is acquiring Alere for $56 per share in cash. I initiated a short Put position (sold the August 2016 Puts for $1.00) on 2/1/16 and I closed out my position today by buying back the Puts at $2.85. That was a nice 65% loss, fortunately this position made up only 0.7% of my portfolio. I really cannot quantify the risk of this investigation by the DOJ. Sometimes, you just need to step away and re-evaluate…
posted by Money Turtle @ 3:50 PM
5 comments
5 Comments:
Bidding wars brewing in $AFFX.. In small calls
HOT seem a good battle. what do you think about april options shorts?
I think it's probably a good risk reward play...
why are they pricing hight the options? the risk is a bid slightly higher with shares+cash that could have a risk in the trend of HOT stock?
The market is factoring the risk with the Anbang proposal. How much of a discount will the market place with the Anbang deal considering the CFIUS review, financing, etc...
I'm just watching from the sidelines with this one.
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