At the close yesterday my short term parameters/criteria pointed to a lower TEVA. So I went long 10 Dec 16 puts at .71....Totally blind sided by this mornings announcement. With my system an unexpected news/fundamental change is the cost of doing business.... Trade could not have been more wrong. But if I had shorted the underlying 1000 sh at 15.74 I would be out close to $3k right now versus the $710 on the soon to expire option. (yes, I know the underlying could come back down). Not happy obviously, but I knew I my max risk was defined at $ 710.