Allergan on the Acquisition Hunt

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.

The Wall Street Journal is reporting that Allergan (NYSE: AGN) is potentially looking at Salix Pharmaceuticals (NASDAQ: SLXP) and at least one additional company about an acquisition as Allergan looks to fight off a hostile takeover bid from Valeant Pharmaceuticals (ETB:VRX).Shares of Salix Pharmaceuticals exploded higher on the news, jumping from 139.50 before the news to briefly over 154 after the story broke. Presently the shares are trading up 9.62 percent at 152.52. Shares of Jazz Pharamaceuticals (NASDAQ: JAZZ) moved in sympathy on the news, trading higher by 3 percent.

27% profit every 20 days?

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