Wednesday, July 23, 2014


FOLD comes out of my Telechart 2000 Scan.  A new software program for me.

I like how FOLD retook its high on good volume.  Biotechs have been strong and this has nice flag (Albeit a large %  (18)  given this stock price .)  In June the pull back was only 8% but the pattern is similar-- dip rally dip go.

Its a positive sign that a major biotech investment firm (perceptive advisors) has been buying in advance of the release of phase III.   They picked up 4 Million shares, which likely the big pop at the end of last month.

Long at 4.21
 STOP: 3.50  which puts just under 2R on the trade.   More than I would normally feel comfortable... But there's a But.   The August 5 Calls were bid at .80!  an amount I feel is insanely high.  IV 231% v HV of 101.  If FOLD didn't move at all it would amount to a 20% return in a month.  I sold CC's against 1/3 my position.   So even if this goes against me, I've hedged and reduced my R at risk to roughly 1.25 depending on when and how the drop and stop would occur.

Monster earnings = I chase and not much action afterwords.  GILD looked very nicely pressed against the 90 handle.  It then blew out earnings so I buy 90.80 the stock doesn't go up a zillion $ like many of the stocks that have beat latley.  FB, CMG, BIIB.  It bobbles and fades a bit.

I took this small so my  Stop  will be under 85.  1R

No comments:

Post a Comment