Trade Alert: A Biotech With A Catalyst

Applying our refined entry rules to an asymmetric, bullish trade.

A New Approach For A New Market Environment

In yesterday’s post, I mentioned a couple of adjustments to our approach going forward.

One was simply making explicit something we’ve been leaning into for the last few months: replacing crypto with biotech as one of our core themes. The other was a refinement of our new rules for entering trades, rules designed to reduce the chances of us catching falling knives. Today’s trade is a biotech name that fits those new rules. . It comes from our Multibaggers list (X account accounts with multiple, documented 100%+ wins this year).

This company has a key catalyst next month—a data readout—and our trade is designed to give us a shot at convex upside going into that catalyst while strictly limiting our risk. Due to wide spreads, we’re using a Black-Scholes estimate of our trade structure to make sure we’re not paying over fair value for it.

Details below.

Today’s Multibaggers Trade