If you bought the Onyx shares 10 days ago to take the advantage of the arbitrage trade I talked about, then you should be happy to have made about $10 per share or so by now. Amgen announced on Sunday that they will buy Onyx for $10.4 billion, equivalent to $125 per share. This is kind of money at the corner type of opportunity and it is just a matter of whether you have the courage to go there to pick it up or not. I hope you did!
Onyx has jumped to $124 by now. Is it worth to hold the shares at this price for the remaining $1 or so? I would not. While it is extremely unlikely, it is not yet 100% sure that the deal will go through. There are still some hurdles to overcome including regulatory antitrust review etc. Since you have already made 99% of the targeted profit, why still hanging in there? Take the profit and look for other better opportunities. Leave the opportunity to those greedy guys to make the remaining $1.
No comments:
Post a Comment