Biotech Trade Update
Playing with the house's money.
Playing With The House’s Money
In a trade alert a couple of weeks ago, I wrote about a microcap biotech with a promising treatment to aid cancer patients.
Trade Alert: A Biotech Lottery Ticket
Looks like real science. Why not. Another Biotech With A Catalyst Coming Up Last month, we bought a lottery ticket on a tiny biotech, based on a post by a scientist-investor whose work I follow. That one didn’t work out: the catalyst there was an FDA decision, following which the stock ended up plummeting over 80%, which will cause our options trade to e…
That biotech stock was BioLineRx (BLRX 0.00%↑) and the trade was buying the $2.50 strike calls expiring on September 15th for $0.10. When we posted that, BLRX was trading about about $1.38; on Friday it closed at $2.02, and those calls last traded at $0.35, after the company reported better-than-expected earnings.Â
Assuming that call option trades at a similar price on Tuesday, subscribers will be able to sell some of their calls for a 350% gain, and play with the house's money with the rest, as we await the potential FDA catalyst scheduled for the end of the week.Â
Exited half of these calls today at $0.35 for a profit of 350%.