A Rare Sight

March 26, 2012

Today I’m watching one of my largest positions take a big run. The move is in response to the European authorities agreeing to consider their developmental drug for weight loss.

I’ve been holding this stock since it was a “darling” and right through its period of being a “dog.”  Throughout the time I’ve held Arena (symbol ARNA), I’ve had options positions open.  In fact, a big slug of the stock resulted from selling “naked” puts for $5 and $6, and then suffering through the indignity of having the stock fall even farther below the strike price than my premium.

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ISDA Determines Greek Default

March 9, 2012

Surprise!

A credit event has occurred.  CDS will pay off, subject to an auction procedure on March 19th.

I’ve seen endless chatter saying that the restructuring was done in a way to avoid paying off the CDS.  I wonder whether all those opinion-slingers will now print apologies.

I won’t be holding my breath.

hh

Just proof once again that it’s more important to keep the casino open than to avoid paying one big winner.

The ISDA FAQ’s on the determination, and other comments, are available here.