V1:
Well, then you missed my antagonism on the thread. I do not believe that the company (LGND) has been shareholder friendly.
However, I appreciate and share most of your logic. As it cratered and as rumors swirled regarding the agonist/Science manuscript, I opted for November 12 1/2s. Given a research premium of 500 million and almost no cushion, any negative data from a phase II will kick the shares, and I thought that I could buy, for the same risk, about 2X the share leverage with calls. That is, I believe that negative data from either the prostate or breast trials will hand you shares at about $8, and the calls were 2 1/4. Of course, if we trade under $13-14 until October and under $15 through November, I kiss 100% goodbye. I plan to provide a little protection on any rally, and the damn SRGN news was not what I needed.
Note, however, that the share price didn't decline too much this morning on news from FDA, but then got hit harder when it was clearer that the product was not in serious trouble.
:-)
It is only coincidence that we have discussed AGPH and LGND today and that I have an options strategy for both. I don't usually do this.
Rick |
