CVTX just sold half of its North America royalties for the recently FDA approved drug (Lexiscan) to TPG for 175M, and the stock is up more than 20% after hours. I think this is a very balanced move. CVTX is not giving up all the upside by selling only 50% (note it still owns 100% of the marketing rights outside the U.S.), and yet it's getting sufficient cash for its debt obligations due in year 2010. I still think the bigger upside will come in the summer. The timing of this 20% jump however is not that perfect for me as I sold covered calls ($10 expiring this Friday) a week ago when the price was less than $7.5. I may see my calls assigned this weekend (happily, btw). If that's the case, I'll probably rebuild a position in CVTX in anticipation of the summer FDA approval.

WaMu's numbers today are largely inline with expectation, and the market even moved its price up almost 5% (including after hours). This gives me more confidence that the bottom is near, if not already here. I'll hold on to my WM shares for now.