Reduced Pharma Positions

When the Pfizer/Wyeth closing was announced I raised my pharma positions, such that my pharma longs exceeded my SPY short. I am taking my pharma longs back down to equal my SPY short. The trade worked very well.

4 comments:

Anonymous said...

Am I being to nosey to ask what a "very well" trade for you is? I've read that you have made a lot of money this year but recently lost some. On a % basis, What is your return goal on a trade?

Tsachy Mishal said...

My pharma position have rallied between 3%-6% since the announcement of the closing of the Pfizer/Wyeth deal (the market has rallied 1%). My theory was that some of the $44 billion would get reinvested in other pharma stocks. That type of return on a short term trade is excellent for me as I deal in pretty steady stocks.

I have a longer term pharma position where I am looking for 25% outperformance over the S&P 500 over a long period of time.

Anonymous said...

Not to shabby!

Anonymous said...

I think he trades with a lot of money. Perhaps in the millions.

So he a 6 to 10% is good trade for him.

I trade far less so I seek at least 15% for each trade I make.