Mergerpie.com

Merger Arbitrage Blog

Closed Short Jan 2018 $30 AKRX Puts

Closed my earlier short Akorn Put options in the last week of the options trading for $0.05. Sold the options for an average of $0.70. It was quite a nice return for just over a month. The margin I put up per short Put is about $500.

Unfortunately I was unable to roll over my trades to Feb. I did managed a trade yesterday by selling a single Mar 2018 $30 Put for $0.50. Seems like the market is expecting an approval soon as there is little premium left in the $30 Put trade. Hopefully I can put in more trades before the Akorn merger is completed. Share price of Akorn had been dipping this past two days so there is still a sizable 3% spread for those who wants to pick up the equity. There is still little news on the status of FTC approval but I believe we can still expect the approval to come by Feb 2018 although the timeline is a little bit tight.

There are little other opportunities that I can find currently besides my current $MON and $TWX holdings. This week I had added a pre-merger punt in $JUNO at about $68. I believe if Celgene wants to get into the CAR-T space, a merger with Juno is the best way forward.

Updated: February 1, 2018 — 7:44 am

4 Comments

Add a Comment
  1. Why not hold your sell put through the expiration data being today?

  2. $AKRX dropped for 2 days on a row so i bought back all the puts just in case… now i am selling $30 March Puts

  3. You are not that unlucky given that you sold only 1 AKRX MAR PUT. Imagine what would have happened if it was multiple of that. Stay safe.

    1. Dear AG, i sold 5 puts in total eventually..i was lucky i didn’t sell more..could have been worse

Leave a Reply

Your email address will not be published.

Mergerpie.com © 2016 Frontier Theme