Biotech primed for a move higher?
Updated
This one is almost pure intuition. We're in pharmaceuticals earnings season now. Seagen reports after market today. A bunch of other large holdings of XBI report on November 3-4, and a bunch more on November 8. Bonds and tech stocks have made a breakout move upward, and small caps look primed. (XBI is full of small and micro caps.) XBI has had a long consolidation here, and I really like the price action on it today. A lot of other sector funds have had mid-day pullbacks, but XBI has maintained its steady upward slope. It has poked above the 20-day EMA. My guess is that this will be green again tomorrow, so I've rolled the dice on a call expiring October 29. I'm also looking for continuation the next two weeks, with a first target of about 131.75.
Note
Was up 92% on my October 29 call and 50% on my November 5 call by the market close. After-hours results from Amazon and Apple were terrible, but aftermarket price movement suggests that small caps may be unaffected.
SGEN beat on revenue but missed on EPS. After-hours bid-ask spread suggests the stock will go up tomorrow. PTCT beat on revenue but missed on earnings and is up after hours. TVTX and CDNA beat on revenue but missed on EPS and are down after-hours. GILD beat expectations but cut its forward guidance, so the stock is down after-hours. OPK beat expectations and has fluctuated after-market, but mostly to the upside. ABBV reports tomorrow morning. Quite mixed results overall, but no deal breakers here.
Note
Really good results this morning. My 128 strike November 5 call is now in the money.Note
Taking profit; may buy back in on any mid-day pullback from 200-day EMA. 
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