Biogen's (344.10 at close at the date of this writing) and Eisai's recent success with BAN24O1, an experimental medication for Alzheimer's which is currently in mid-stage clinical trials, in addition to a recent price target raise by Citi, and overall bullish analyst sentiment led to a rally between July 6-9, 2018.
Although the clinical trial's success was certainly reason for bullish sentiment, it ran too far too fast and indicators pointed towards to a sell off. I thus opened put options on July 9, expiring July 13 2018 (currently in the money). We are now only about two weeks away from Biogen's earning report. After studying historical data and charts, I've found that there is often a sell off prior to earnings OR there is a run up then a slight sell off right before the earnings date. I've annotated the chart with periods that indicate this.
In this case, I believe downward momentum will continue followed by a slight rally pre-earnings then a sell off. Opening JUL20 puts may be a smart move at this time.
In the long term, Biogen -0.21% is very scalable and overall is very promising. I agree with Citi's PT of 371.
https://www.wsj.com/articles/drugmakers-call-experimental-alzheimers-drug-study-outcome-positive-1530897640?mod=searchresults&page=1&pos=2
Although the clinical trial's success was certainly reason for bullish sentiment, it ran too far too fast and indicators pointed towards to a sell off. I thus opened put options on July 9, expiring July 13 2018 (currently in the money). We are now only about two weeks away from Biogen's earning report. After studying historical data and charts, I've found that there is often a sell off prior to earnings OR there is a run up then a slight sell off right before the earnings date. I've annotated the chart with periods that indicate this.
In this case, I believe downward momentum will continue followed by a slight rally pre-earnings then a sell off. Opening JUL20 puts may be a smart move at this time.
In the long term, Biogen -0.21% is very scalable and overall is very promising. I agree with Citi's PT of 371.
https://www.wsj.com/articles/drugmakers-call-experimental-alzheimers-drug-study-outcome-positive-1530897640?mod=searchresults&page=1&pos=2