Closing the door on Valeant…for now

At this point the it seems like the catalyst I was looking was a non-event. Today, Valeant issued it’s delayed 10K. The news from CNBC stated that…

“the restatement reduced previously reported fiscal 2014 revenue by about $58 million, net income attributable to its shareholders by about $33 million, and earnings per share by 9 cents.The restatement for the first quarter of 2015 lowered revenue by about $21 million, but increased net income attributable to Valeant by about $24 million and earnings per share by 7 cents.”

Trading was hauled this morning for the first few minutes of trading. Once it resumed the lackluster price action was a clue that the information had already been baked into this stock. With this catalyst off the table my upside was taken away and the trade became more risky. I took my final position off the table. I am completely out of the trade. In summary, I had 11 different trades for a total $3371 and %134 percent gain.

VRX4.29

For previous recap see my earlier blogs here and here

Trade Summary

Trade 14: Combination of stock and options on VRX. Valeant Pharmaceutical. 

14 (a)

  • VRX stock
  • Date: April 5-April 19
  • Gain: $1267
  • Avg. purchase price: $30.54
  • Avg. sale price: $33.42
  • Percent Gain: 10%

14 (b)

  • Sold to open VRX April 15 $32 put
  • Date: April 14
  • Gain: $109
  • Avg sell price: $0.77
  • Avg buy price: $0.61
  • Percent gain: 20%

14 (c)

  • Sold to open VRX April 15 $32.50 put
  • Date: April 15
  • Gain: $100
  • Avg sell price: $0.54
  • Assigned stock
  • Percent gain: 100%

14 (d)

  • Sold to open VRX April 22 $31 put
  • Date: April 18
  • Gain: $78
  • Avg sell price: $1.19
  • Avg buy price: $0.72
  • Percent gain: 40%

14 (e)

  • Sold to open VRX April 22 $32.5 call
  • Date: April 15-19
  • Loss: $183
  • Avg sell price: $1.45
  • Avg buy price: $1.84
  • Percent Loss: -26%

14 (f)

  • Sold to open VRX April 22 $33 call
  • Date: April 18-19
  • Loss: $40
  • Avg buy price: $1.69
  • Avg sell price: $1.44
  • Percent Loss: -17%

14 (g)

  • Bought to open VRX May 20 $30 call
  • Date: April 5-April 7
  • Gain: $1126
  • Avg buy price: $4.6
  • Avg Sell price: $5.96
  • Percent Gain: 30%

14 (h)

  • Sold to open VRX May 20 $35 call
  • Date: April 6-19
  • Gain: $20
  • Avg buy price: $4.94
  • Avg sell price: $5.22
  • Percent Gain: 5%

14 (i)

  • Sold to open VRX May 20 $35 put
  • Date: April 6-19
  • Loss: $115
  • Avg buy price: $5.93
  • Avg sell price: $6.94
  • Percent Loss: -17%

14 (j)

  • Bought to open VRX May 20 $40 call
  • Date: April 11-29
  • Loss: $100
  • Avg buy price: $2.11
  • Avg sell price: $1.24
  • Percent Loss: -41%

14 (k)

  • Sold to open VRX May 20 $30 put
  • Date: April 11-29
  • Gain: $233
  • Avg buy price: $5.45
  • Avg sell price: $7.84
  • Percent Gain: 30%

Follow me on Twitter @ Jeffreytief

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