Author Topic: Immunomedics Risk Arb  (Read 2968 times)

cherzeca

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Re: Immunomedics Risk Arb
« Reply #20 on: September 16, 2020, 01:22:11 PM »
Wrote 65-strike, Sept 18 expiration puts for $0.40 per share.

interesting.  what was pre-announcement stock price?


Gregmal

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Re: Immunomedics Risk Arb
« Reply #21 on: September 16, 2020, 01:36:15 PM »
Wrote 65-strike, Sept 18 expiration puts for $0.40 per share.

interesting.  what was pre-announcement stock price?

$40s. But the above deals have faded quickly. It was more or less free money. No deal is getting nixed the same week it is announced. Next week's expiry has diminished as well.

boilermaker75

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Re: Immunomedics Risk Arb
« Reply #22 on: October 05, 2020, 06:28:07 AM »
Wrote 65-strike, Sept 18 expiration puts for $0.40 per share.

interesting.  what was pre-announcement stock price?

Just over $42. Last week I wrote some $85-strike, Oct 9 expiration puts.

boilermaker75

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Re: Immunomedics Risk Arb
« Reply #23 on: October 06, 2020, 11:24:49 AM »
I wrote some Oct-16 expiration, 85-strike puts for $1.05 per share.

Gregmal

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Re: Immunomedics Risk Arb
« Reply #24 on: October 06, 2020, 12:44:15 PM »
Sold a few 10/9 $85 puts for 40c. Thanks to POTUS antics and vol spike.

boilermaker75

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Re: Immunomedics Risk Arb
« Reply #25 on: October 13, 2020, 12:31:07 PM »
wrote 85-strike, Oct 23 expiration puts for $1.10 per share today.

boilermaker75

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Re: Immunomedics Risk Arb
« Reply #26 on: October 14, 2020, 11:55:44 AM »
It looks like this risk arbitrage play is over.

It was nice while it lasted!


Haasje

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Re: Immunomedics Risk Arb
« Reply #27 on: October 19, 2020, 11:48:23 AM »
Have to wait till options start trading near the current share price to see if they are worth selling.

I like selling puts in these situations because you know exactly your return and the end date.

isn't selling a put on a merger arb, basically the same thing as being long announced spread merger arb?

I guess the puts can work better if there's unexpected timeline extension but not a break, but it's basically the same thing, right?. You do lose the overbid optionality, but that's pretty rare and only relevant to some situations.

Risk arbitrageurs rightly describe their business as one of put selling.

Is there a non-obvious reason that put sales are better than being long the spread?

I like writing puts if I have a different opinion on the close, the break price or certain events compared to the market. You can more clearly express how you think differently about the deal via options (obviously for better or worse :) )