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.
In a new report, analysts at JMP Securities focused on biotech stocks and recent developments in the world of biotechnology. Overall, much of the sector has been under pressure recently from a negative market tone and “puzzling” Endocrinology and Metabolic Drug Advisory Committee (EMDAC) discussions.
EMDAC commentary
JMP analyst Michael King, Jr. was surprised by some of the recent actions and statements made by the EMDAC. King describes a perceived lack of consideration on the part of panelists when it came to some important issues.
“The explanations given by the FDA, specifically concerns over mixed studies of fibrates and the negative studies of CTEP inhibitors and niacin, strike us as disingenuous, at best,” King writes.
The EMDAC sent Amgen Inc (NASDAQ: AMGN) and the partnership of Sanofi (NYSE: SNY) and Regeneron Pharmaceuticals Inc (NASDAQ: REGN) home with a recommendation in favor of all indications they sought except for the largest one (patients with mixed dyslipidemia intolerant to statins). King believes that this decision set a “negative tone” and has certainly influenced biotech stocks.
Other news
Recent news from the American Diabetes Association was generally good, especially regarding Merck & Co Inc (NYSE: MRK)’s TECO study.
Data presented at the European Hematology Association (EHA) conference was also positive for names like Acceleron Pharma Inc (NASDAQ: XLRN), Alny Pharmaceuticals Inc (NASDAQ: ALNY), Ariad Pharmaceuticals Inc (NASDAQ: ARIA) and Karyopharm Therapeutics Inc (NASDAQ: KPTI).
Stock picks
JMP believes that there are plenty of opportunities remaining in the biotech space for selective investors. The group of biotech stocks that JPM currently rates Market Outperform includes oncology companies Celgene Corp (NASDAQ: CELG), Incyte Corp (NASDAQ: INCY), Medivation Inc (NASDAQ: MDVN) and Pharmacyclics Inc (NASDAQ: PCYC).
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.
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