Trade Alert: Biotech

A rare, large cap value trade from our Multibaggers list.

Selective After The Relief Rally

Earlier this week, we added long exposure in several names after the market’s relief rally on ceasefire news in the Middle East. Since then, we’ve stayed selective. Some of the names that looked interesting on the screens were simply too expensive in the options market after their recent moves, and others didn’t give us structures with reward/risk profiles we liked well enough.

That’s part of the process too. We don’t need to force trades just because a stock passes one screen or another. We’d rather wait for a setup where the structure, the timing, and the price all line up.

Today’s Setup

Today, we’re taking a shot on a large cap pharma name that came to us from one of our Multibaggers accounts. As a reminder, our Multibaggers list is comprised of accounts from our Market Watchers X list that have had documented, 100%+ gainers over the last year.

Unlike some of the faster-moving names we looked at last night, this one doesn’t have a great chart right now. But it does have much stronger fundamentals, a major earnings catalyst coming up in early May, and another one in early August. And it passes our falling knives screens. So rather than trying to trade it as a short-term momentum name, we’re giving it room to work through both earnings cycles with a longer-dated structure, while financing that exposure with nearer-term short premium and a defined-risk put spread.

Sticking To Our Process

As usual, we estimated the fair value of the structure first and then looked for a way to enter it at a discount. This isn’t a name that typically fits our risk budget for a 4-leg hybrid if we have to pay up for it, so we’re being a little stingier here than usual.

That means if we don’t get our price, we won’t chase it.

Today’s Multibaggers Trade

Large-cap pharma / obesity-drug rebound theme

The stock is Novo Nordisk (NVO 0.00%↑), and our trade is a hybrid combo consisting of these four legs:

1. Buying the Sep 18, 2026 $40 call,

2. Selling the Jul 17, 2026 $45 call,

3. Selling the Jul 17, 2026 $35 put, and

4. Buying the Jul 17, 2026 $30 put,

For a max net debit of $1.30. The max gain on 1 contract is $484 (if the short call expires in-the-money; if it expires out-of-the-money, or we buy-to-close it before then, our upside will be uncapped), and the max loss is $630. This trade hasn’t filled yet. If it doesn’t fill by the end of today, I’ll keep it open until it fills or until the close on 4/17/2026, whichever comes first. This trade filled later in the day on 4/10/2026.

Exiting This Trade

My plan:

Novo Nordisk (NVO) (assuming it fills)

• Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short Jul 17th, 2026 $45 call at $0.20, and raise that price if necessary as we approach the July expiration. If the short July $45 call is in-the-money at expiration, I’ll sell the long Sep 18th, 2026 $40 call and use part of the proceeds to buy-to-close the short July call. If I buy-to-close the short call before expiration or it expires out-of-the-money, I’ll share a GTC limit sell price for the long September $40 call in the comments here and via chat/email.

• Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.20, and raise that if necessary as we approach expiration.