3 'Repeatable' Biotech Trades

Sep. 25, 2024 12:46 PM ET, , , , 6 Comments
(9min)

Summary

  • Small-cap biotech stocks have struggled over the past five years, but lower interest rates may boost sentiment and M&A activity, benefiting the sector.
  • One way I have kept my biotech portfolio churning out profits is by embracing using covered call orders to establish positions in small-cap biotech names.
  • Many of these have become consistent profitable “rinse, wash and repeat” trades over the years.
  • I highlight three of the biotech stocks that have been covered call stalwarts for me in the paragraphs below.
  • Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Life Science Investing

Bill Oxford

It has been a tough go for the small-cap biotech investor over the past half decade. As you can see below, the SPDR® S&P Biotech ETF (XBI) is trading just about at the same level as it

Live Chat on The Biotech Forum has been dominated by discussion of lucrative buy-write or covered call opportunities on selected biotech stocks over the past several months. To see what I and the other season biotech investors are targeting as trading ideas real-time, just join our community at The Biotech Forum by clicking HERE.

This article was written by

51.12K Followers

Bret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.

Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DVAX, FOLD, NTLA, XBI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Related Stocks

SymbolLast Price% Chg
DVAX--
Dynavax Technologies Corporation
FOLD--
Amicus Therapeutics, Inc.
GSK--
GSK plc
XBI--
SPDR® S&P Biotech ETF
NTLA--
Intellia Therapeutics, Inc.

Related Analysis