VRX stock/options and ultimate outcomeIt seems VRX has only one way ticket and that's downward. During last two years, every time when there was a good news and it started going up, thought probably this is the time to buy some more and cover some previous big losses. No, this freaking share starts going down again and lost more money.
Bill Ackman got fed up so much with this company that he had to take $5 billion losses (not easy to fathom how many zeros it takes to make a billion) to get out of this company. Probably he too thought many times that it would come back and it never did and he ended up loosing that big.
Not comparing anyone with Bill Ackman but the point is that once a company (like Valeant) earns this bad name, no matter what happens, it has probably only one fate like Nortel. So it's like monkeys oily tree climbing, if it goes two steps up, falls three steps down.
If any small investor does option trading and goes for long call options on VRX, the most likely outcome is loosing money. If you go for shorting, you can't sleep most of the nights becz. if it jumps like hell for a day or two, you would think you are going bankrupt. You are not sure either to go for bullish or bearish option strategies either as it can go either way, again making you have sleepless nights. At some point, probably it would be better to close everything on VRX (incl. deleting VRX from your watch list) and get hell out of it like B. Ackman (no offense to anyone, just a personal observation).