I had to wait until after the FDA panel voted today on HGSI’s drug to treat Lupus, but the after-hours trading made it three big winners on a truly lousy day.
Overall, NAV went up about 1%, which counts as a win in a market like today’s.
Each position was complex, consisting of long or short stock and both long and short options.
As I said in that post, the IOC parabolic rise since the secondary seemed unsustainable, so I had a net short position on there. FAZ finally got moving today in response to the potential for a domino bank problem in Europe. Yesterday I rolled the November options in FAZ to December, and today’s increase in the price and the volatility helped the position quite a bit. For HGSI, I was selling puts and calls (strangles) for November (just two days left) and had a long stock position with matched covered calls.
In other words, all three worked in the direction I thought they might, but in each one I gave up some upside in exchange for lowered risk.