Bausch Health Companies Inc (BHC)

[JLS]

Rolled up and out.

It seems like VRX is holding up pretty well so I closed (at a profit) the $20 strike Calls I sold yesterday (that expire today in two accounts) then sold $21 Calls that expire next week in one account and sold $20.50 Calls that expire next week in a different account. The original strikes were at $20 in both accounts.

Why two different strikes for the new ones? Not exactly sure myself except that one paid $0.38 and the other paid $0.63, and I had this internal debate with myself regarding which strike to use. I can always modify them (probably at a profit) next week, so ...

The new CEO's incentive:

Valeant paid its new CEO Joe Papa a fat paycheck worth nearly $63 million in 2016, according to the company’s recently disclosed proxy statement.

But there’s a catch. Papa doesn’t actually get to keep the vast majority of that money unless he pulls off a truly heroic feat with Valeant’s stock price, a maneuver so seemingly impossible that the accomplishment would not only make him a darling on Wall Street, but it could put him in the hall of fame of corporate turnaround artists.

In fact, in order for Papa to even keep half of his paycheck, he has to nearly quadruple Valeant’s stock price. And if he wants to keep all of his pay, Valeant stock will have to rise 460% from its current level in just a little more than three years. That means Valeant would need to trade at or above $60 a share, putting its market cap at $20.5 billion, or about $17 billion more than it is now.

http://tinyurl.com/kueole4