Cano Health is a (value-based care) VBC organization with over 150 medical centers and 300,000 members. Medicare revamped its fee schedules from the traditional fee-for-service to value-based care in order to reward providers for managing members' health. For example, the fewer sick people who go to the hospital, the more Medicare will reimburse providers.
Currently, Cano Health is by far the worst investment I have ever made. I started buying shares around the $3-4 range back in 2022. Then there was speculation of a potential buyout from CVS. CVS ended up not acquiring Cano but to make matters worst they acquired Cano's competitor Oak Street Health $OSH
for over $8.5B.
I am down 66% on paper but my loss is much worse than this appears. The reason is for my genius idea to buy options in Cano that expired worthless.
If you are going to dip your toes into the M&A game, I would say options are not the best idea. If I did the same trade without any options, I wouldn't be nearly as upset about it. Cano could have been acquired by CVS like Oak Street Health was, and I would be doing a victory lap right now. That makes this trade sting a little bit more as well.
I don't have a fantastic track record with options in general.