PB,
As you can see the COLM and VFC puts will almost certainly expire worthless. The stocks have moved almost straight up since the fall. These trades have been two of my most frustrating ones. I am working through some of the assumptions in current estimates to see if rolling forward makes any sense. However, this would be in the form of a new trade alert as I don’t see capturing any value from the current holdings.
Best,
Linda

Sydnee,
CELG is getting clobbered due to rumors that it is in talks to acquire Juno (NSDQ: JUNO), a biotech company developing cancer drugs that work via altering a patient’s immune system. The prospects for Juno’s drugs are bright but the valuation being tossed around ($11 billion) is hefty. As a reminder, Celgene just announced the purchase of Impact Biomedicines for $7 billion last week.
I don’t think Celgene is as close to the deal as investors do. The company just presented at a giant biotech conference last week and I think management would have opted out of the conference if they had a pending deal to announce. The rumor was in the Wall Street Journal and likely has some truth but is early. Celgene already owns 10% of Juno so could wait a bit.
With all that, I still like the stock. These deals would help diversify Celgene away from its largest cancer drug which will see some generic pressure in the next year. The company will formally release Q4 results on January 25 but already provided a framework to investors at the conference. I think these numbers look good and expect the stock to rally as management gives more color on a possible acquisition.
Best,
Linda