For Risk Tolerant InvestorsNVAX got Fast-tracked for its RSV vaccine. Currently theres no approved vaccine. NVAX has been an a bullish run ever since and I was unable to catch it at $4.50. I hope that the stock will retrace to .5 FIB and find support at the 100 Simple Moving Average before the start of the the 3rd quarter.
If it does I will be looking to buy NVAX at this level because some time in the 3rd quarter is when NVAX will announce its RSV prevention vaccine Phase 3 results. This announcement could soar the stock to 17 by middle of 2017 and it will definetly send it past its all time highs of $15; it could also send the stock tumbling if it fails,.
As a result, if NVAX can get to the lowers levels, I will do the math to see if Call Options would be less risky than actually owing the stock because if the news comes back negative I believe NVAX will tank to below $1.50. This gap depending on the amount of shares may be more risk than the money put down on some Jan17 Out-of-the-Money Calls that go to zero.
Some NVAX Jan17 10 Calls will probably be selling for .35 to .55 if the pullback occurs and if the news was bullish those contract prices would quadruple instantly. You could then sell them or own the stock. I would probably own the stock and sell out-of-the-money calls for the rest of my life to pay my rent as NVAX finds support at $15....LOL
