Option Strategy for AKRX:
1) Buy Jan 21 $10 put ~$2.75
*2) Sell current month $10 put 1.25
*Repeat this every month until either:
1) Stock declines below 10, 2) Stock rises above trendline, 3) Short month IV declines below 90%
I estimate this should yield about 25% monthly... we'll see. Max Loss is 2.50 first month and is a no-lose after the 3rd month.
This company has issues. It's association with John Kapoor doesn't help matters. Anytime now, the judge should deliver his decision regarding the merger drama. Based on price and chat, many are expecting the verdict to favor AKRX. Who knows. The possible verdict outcome could be merger proceeds at original terms, proceeds at a reduced price, or Fresenius is...
Not sure if this one will retest the 100 EMA again or not. If so, it's a good entry point. plenty of room between the 2R target and the next major resistance level. Also able to put the 10, 20, 50, and 100 EMA's between the entry and stop. I'll be looking for a slight pause when we hit the 200 EMA but it should break through.
AKRX is testing levels last touched in February. The potential to break higher exists if the market overall also continues higher from where it is trading today.
If AKRX is able to trade above 52.78 with above average volume the day it does this could be good confirmation of buying pressure and a trigger to get long. The idea is to hold this...
The Long/Short Equity spread of AKRX/PKD has just broken out to a new high and finished Friday's trading session at the high of 12.82.
Akorn Inc (pharmaceuticals) has reported consistently good earnings with an EPS change of 80% in the last quarter and also an annual ROE (Return on Equity) of 27.1%. It trades at a slightly higher P/E ratio of 48 which has been...