I have looked at any sign of why VRTX got hit today. I can not find any news or information that would cause the hit today. The NBI index is up .57%. The BTK index is only down .17%. Among biotechs such as GILD I do not find drastic price action.
The only conclusion I come up with is there must have been a decision by one (or more hedge funds who may have colluded in advance) to try to drive the stock down. They started with paid posters to all of a sudden appear on this board today --notice they were not here in the past week including yesterday-- to post lies and trash. THEY ALSO HAD ONE OF THEIR PAID AGENTS TO POST AN ARTICLE ABOUT THE OPTION DEAL THAT THEY THEMSELVES HAD INITIATED IN ADVANCE.
With no news the volume today was up over 60%. Why? We shall see how their action works out for them in the long run. As for me, I added to my position today.
negative article from Seeking Alpha might have done it not exactly news but just came out http://seekingalpha.com/article/1688412-vertex-pharmaceuticals-dog-of-the-nasdaq-100-biotechs?source=email_rt_article_readmore
Perhaps the 16 mutual funds indexed to the S&P 400 were unloading their positions in stocks leaving that index e.g. VRTX in greater amount than the 36 or more mutual funds indexed to the S&P 500 were buying yesterday. There will be a shift to buying pressure by the end of the day next Friday as all the S&P 500 funds will be required the have there positions in VRTX by the end of the day on September 20. Short positions will need to cover when that buying pressure kicks in, and Vertex will be testing new highs when it announces positive clinical trial results and licensing deals for the drugs in it's pipeline in the next four weeks.
All about the BS option article today.....the article gives no context to the Vertex data pending in the next 3 months. the article reads like a computer program "ran the numbers" on a traditional stock and determined it is going down in the next year. Vertex is far from a traditional stock.....as longs know!