Married put strategy. Long 100,000 shares currently cost $240,000
1000 2.50 strike puts cost $40,000 total position cost $280,000
Unlimited upside if stock explodes. If stock goes to 0 total loss/risk ONLY $ 30,000
I can understand being bearish on these biotech but why the ones with such a low pps. Not enough downside
for the time you've spent here waiting for results. If your right there is what 1.50$ max downside? The time could have been better spent trading NUGT for its DAILY up and down 5-15$ moves no?
Insiders will do some under the table deal and shareholders will get the shaft. See exactly this setup atleast 12times in the last 5 years. Last example KYTH
Dude. Listen carefully. Use a bearish strategy using put options on most biotechs. However the share price needs to be atleast 15 and a market cap between 500mil to 3bil. Cytr does not qualify. I know what Cytr is working on that s why im long here. Not to mention it wouldnt qualify for my short strategy anyway . But you will make more money betting on biotech stocks to drop because there are more ways to win
1. Bad data. Stock plummets 1. Good data or Approval Stock jumps maybe.
2. Fda delay Stock plummets
3. Good data but Stock doesnt move anyway (Cytr)
4. Fda approval but black box label Stock plummets
Thats what Im trying to say.
3yrs ago? Not sure what your talking about. As for CYTR no I would not short. First of all shorting is idiotic. I use put options, second of all CYTR stock price is too low so there is not enough downside. I need a stock
between 15-40$ with a market cap of max 1.5b for my bearish strategy.
See just like I said. Good data and stock doesnt move. Bears win if bad data is announced or if the company or FDA announce a delay and bears even win sometimes when good data is announced and the stock still doesnt move. Chances of making money always higher when you bet against these biotechs.
Yes overwhelming positive.Here's the problem Ive also seen often thou. Even when your right and positive trial news comes out the stock sometimes still doesnt rocket. Sometime even when your right your wrong. Thats why Ive seen more profit on betting bearish. If the news its bad you can bet your #$%$ its going down. Positive news isnt as clear cut when it comes to stock appreciation.
Ive learned three valuable lessons.
#1. Never go all in, no matter how sure you are.
#2. Always bet on drug failure and price plummet. You will be right wayyyyyy more often
For every CPxx you have 9 or 10 horrible failures. BUT do not short use Put options
Much safer when you do run into a CPxx
#3. If your long buy a couple put options just in case. If bearish a couple calls.
As for Cytr I really hope its a Cpxx, We need it to kick cancers #$%$.That being said never marry a biotech stock
They clean you out if theres a divorce.