Trade Alert: Biotech And Second Chances

A former favorite from our Multibaggers list ends up in Portfolio Armor's top ten names.

Multibaggers, Biotech, and Second Chances

As regular readers know, my Multibaggers list consists of traders on X with publicly documented triple-digit gains this year, and it’s one of the earliest places new ideas show up.

One of the nice things about the Multibaggers list is that it usually front-runs Portfolio Armor: traders there will often latch onto a name early, and PA will only pick it up after the chart and the options market start to reflect that enthusiasm. That’s what happened with one particular gene therapy stock a while back: it ripped higher after being first-to-market with a treatment for a brutal neurodegenerative disease.

Then the referee moved the goalposts.

After the company walked through each regulatory hoop, the agency in charge abruptly changed its stance at the end, and the stock ended up cut in half. That hit not only the main name, but also a related “picks and shovels” stock that helps provide the delivery mechanism for therapies like this.

Some of the traders on my Multibaggers list still think the original thesis is intact: the company did what the regulator asked, and if that doesn’t eventually get recognized, it sends a terrible signal to anyone funding early-stage biotech in the U.S. — especially with China trying to eat our lunch in this space.

What’s different now is where the price is.

Instead of buying this story after a huge breakout, Portfolio Armor is finally getting a crack at it after the regulatory rug-pull, with the stock back at a level where the options market is once again offering interesting asymmetry.

Today’s trade takes advantage of that: it’s a bullish, defined-risk, asymmetric bet on one of those Multibaggers names that just showed up on my Top Names list, with a key catalyst coming up next spring.

We’ve also got a second Top Names trade today—a repeat winner for us tied to the ongoing datacenter buildout and U.S. reindustrialization theme. Details on both trades follow below the paywall.

---

Today’s First Top Names Trade

(Also A Multibaggers Pick)