Sold REGN SEP 16 2016 400/375 Bull put spread @ 5.20

Went with the spread for this reason:

A series of proposals from the U.S. Centers for Medicare & Medicaid Services related to reimbursements could lead doctors to favor the use of rival eye drugs Avastin and Lucentis, made by Roche Holding AG, Regeneron executives said on a post-earnings conference call.

No matter what happens my worse case scenario is getting the stock 19.80 below current price. Let’s say this passes and REGN drops to 200. With the put spread I’d close the long put at a big gain and take the stock at a big loss but net basis in the stock would only be 219.80. If it doesn’t tank then it’s a nice return.