Biotech Stocks are Ready to Soar

Q1 of 2016 wrapped up Thursday in historic fashion. After being down more than 10% at one point, the S&P 500 SPX staged a massive rally and ended the quarter in the green. How rare is this? It hasn’t happened since 1933.

As we head into April, option bulls still have their foot on the gas. Biotechnology has been a bit of a lagger in the recovery, but one sharp trader thinks this sector is now primed to take the lead. Earlier today this customer bought 10,000 April 52.5 calls in the S&P Biotech ETF XBI – NYSE.

Bottarelli Research Translation: He paid $1.20 per contract, amounting to a total outlay of $1.2 million in option premium. With a break-even price at expiration of $53.70, XBI has to gain 3.9% for this trade to profit. With today’s rally, XBI has once again closed above the 50-day moving average. From here it seems to have clear skies up to $54 and closing at that level would deliver a modest profit, but you can bet this trader is looking for more. Above $54 XBI can conceivably run all the way to $60, turning this trade into a multi-million dollar winner.

My position:

Company           Sym   Type  %Val    +Date       $Add     $Last   %Chg

Biotech 2xbull  BIB      Long  11.17%    Details »   39.65   43.23   9.03%

Biotech 3xbull  LABU   Long                    26.71    29.97  12.2%

Energy 3xbear  ERY     Long  10.89%    Details »   21.70    22.99   5.94%

 

Apr.2, 2016

 

 

所有跟帖： 

• 刚卖掉！亏损大了！ -Tianyazi- ♂ (0 bytes) () 04/02/2016 postreply 20:10:35