Biotechs Still Vulnerable?

  • January 16, 2001
  • Dave Landry

Celgene
(
CELG |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, may provide an opportunity for covered puts. You can
short the stock at 26 3/8 and sell the Feburary 25 puts for 3 1/2. 
This represents approximately an 18% return (more than 200% annualized, based on
31 days until expiration) should the stock be put to you.

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The banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, appear to be trying to rally out of a pullback. Continue to look for buying
opportunities in calls and call spreads here.

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The biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, still remain
in a vulnerable position. Look for buying
opportunities in puts and put spreads on any resumption of weakness.

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Best of
luck with your trading on Wednesday!

P.S. Reminder:
Protective stops on every trade!

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