REGN Bull Call Spread……a challenge so far

On Oct 12 we established a BuCS on REGN purchasing May 21 2021 $600 Calls and selling Oct 16 2020 $620 Calls. Within a couple days of establishing the position the price of REGN deteriorated and has continued to remain down despite a couple of bounces. We rolled our short option position 9 times generating $10,131 in premiums but not enough to offset the $15,125 loss on the long call.

We remain optimistic on the position. Not sure why the stock hasn’t recovered more. Covid cases on a global basis are hitting record daily highs and REGN has one of the only proven treatments. Vaccines will eventually help contain the virus but a lot of opportunity exists for REGN in the interim period.

Leave a Reply

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

WordPress.com Logo

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

Google photo

You are commenting using your Google 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 )

Connecting to %s