Valeant? VRX

Well, the 21.50 level seems to be support for now....
if this company could just announce something positive by July....
then this is the bottom.
That's the bet.
Go with the 25 Oct strike calls.

 

VRX @ $18.73 today. Probably caught in the Brexit downdraft? Time to buy some call options?

 

IV has zoomed, so buying calls outright might not be a good idea.

 

Another option is to do a bull put spread:

The purple line is July 18.5 call purchase...
the white line is July 18.5 put sell, 22.5 put buy.
Still, the better time-line may be to go with August expiration.
Bottomline: we are looking for a 20% "pop" in VRX before expiration.

 

Valeant Pharmaceuticals Intl's sell rating reiterated at Wells Fargo.

 

Bank analysts are notoriously late with their calls. Where were they 6 months ago ?

 

Valient continues to bounce around here at the $20 level.
I think there is potential for a bounce in here after the next pullback in the general market.
Also, XBI seems to have found some strength here as well.

 

there really are some better investments if you look for them

 

http://www.marketwatch.com/story/va...not-to-board-the-bearish-bandwagon-2016-07-14
Shorting at these levels could be dangerous.

 

huge drug pipeline here compared to JUNO with only 1 drug still trying to get approval