NVAX trade ideas
TRADE IDEA: NVAX COVERED CALLI'm already in a similar trade, but NVAX keeps on giving with high implied volatility rank and high implied volatility.
Metrics:
Buy shares at 6.99
Sell Oct 21st 7 call
5.10 db at the mid (off hours; it may naturally look a touch different at NY open)
$190 max profit if called away at $7 (a ridiculous profit figure for a $7 underlying)
ROC: 37.3%
Alternative: Look to just sell premium using the Oct 21st expiry. For example, the 5 short put is currently bid .75/ask 1.15. Even the bid ($75) is stupid rich premium here ... .
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
TRADE IDEA: NVX COVERED CALLThanks to TheBanker and the Biopharma chat room for spotting this one ... . A little bit of research on its implied volatility percentage, and voila, a diamond in the rough, premium selling play ... .
Metrics:
100 Shares at 7.56
Sell Aug 19th 8 short call
Whole Package: $620 debit (6.20 will be your cost basis in the shares)
Max Profit: $170 if called away at $8/share or about at 27% ROC
Naturally, this isn't ideal, since the bottom it put in was way below here. Because of that, I'm doing this small, just in case their Phase III RSV trial doesn't turn out as stellar as hoped ... .
$NVAX ... RSV looks intriguing! (another biotech)Read more info on clinical progress here - novavax.com
www.tradingsignalreviews.com
Potential Short Set Up This price zone could see short term buying support. However, watch this region to see if support turns into resistance which would send price under $5
NVAX Day Trade Retest Gap (Brad Reed Mar26,2015)NVAX expected around 7.32 for a Retest Gap. To learn to trade this strategy for free go to www.RealLifeTrading.com
NVAX still moving upI believe NVAX will continue to move up over the next 1-2 weeks, until it hits $9.85-$10.00. At this point, I think it will hit resistance at the longer term upper trend line. I am also watching to make sure it remains within the upward channel. If it breaks out to the right, I'll exit my positions.
