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