Yes, and the drink is on me too. Any other equities I should look at?
I am hanging on because the $9 is still not priced into either the stock or the options on CELG when compare to BMY stock price.
CELG on sale??
- Thread starter TheBigShort
- Start date
I am hanging on because the $9 is still not priced into either the stock or the options on CELG when compare to BMY stock price.
@TheBigShort,
Received payout of CELG after the deal with BMY was closed last Wednesday with the CVR (contingency value right) valued at about $2.
The reason I post again on this is, after the merger, for each CELG share I received $50, 1 BMY share and 1 CVR (contingency value right). The CVR is listed @ NYSE, currently ~$2 a share and I am keeping the CVR because it is an option and I got it for free.
I am trying to figure out how to price this puppy. It acts like a binary option: If three drugs currently on phase 3 clinical trial are approved within about a year, the payout is $9. If any one failed to get FDA approval within the set period, the payout is $0. So the R:R is 2:9, all or nothing.
Based on my research on the three drugs, two seemed to be a sure thing and the third is a timing issue. So, I took a gamble and bought more BMY/RT today.
Anyone here knows how to value this CVR option?
Thank you in advance.
Received payout of CELG after the deal with BMY was closed last Wednesday with the CVR (contingency value right) valued at about $2.
The reason I post again on this is, after the merger, for each CELG share I received $50, 1 BMY share and 1 CVR (contingency value right). The CVR is listed @ NYSE, currently ~$2 a share and I am keeping the CVR because it is an option and I got it for free.
I am trying to figure out how to price this puppy. It acts like a binary option: If three drugs currently on phase 3 clinical trial are approved within about a year, the payout is $9. If any one failed to get FDA approval within the set period, the payout is $0. So the R:R is 2:9, all or nothing.
Based on my research on the three drugs, two seemed to be a sure thing and the third is a timing issue. So, I took a gamble and bought more BMY/RT today.
Anyone here knows how to value this CVR option?
Thank you in advance.
Used all the $50 a share CELG payout to buy BMY-RT @ $2.08 a share.