In AFFY again

A couple of weeks ago I wrote a piece on some research I have done looking at stock movements after an FDA approval. I was essentially testing the “sell the news” hypothesis. My results strongly supported this as a strategy with 10 winners and 2 losers over a 2 day holding perdiod. I am therefore going to test it in real time with AFFY. To this end I have taken on a small position in AFFY April $13 puts, purchased for $45 per contract.

I want to emphasise that I am not pessimistic about AFFY’s long term prospects – this is a position that I only intend holding for a few days.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s