Trade Alert: Biotech

One bullish bet, and one bearish bet.

A Brief Programming Note

Before we get to todays trade alert, a note about this week’s top ten names. I normally post these on Thursday night’s, but plan on doing so tonight instead, since the stock market will be closed tomorrow in honor of President Carter’s passing.

Two Biotech Trades

One of my sources of ideas is my Market Watchers list on X. That list includes an infamous biotech industry veteran who was correctly bearish recently on a biotech with an Alzheimer’s drug candidate. He is now bearish on another expecting it to go bust this year.

Based on his success with his previous call—and the bad track record of Alzheimer’s drug candidates in the past—I’m inclined to agree with him. Our bearish bet today will give us a gain of about 450% if we’re right, and our maximum loss will be 100% if we’re wrong.

The other biotech trade idea is from the same analyst. It’s on a company that has spiked this week on a potential breakthrough that could lead to a cure for diabetes. Our trade here is simply to a few shares of the company now, and look to add more if it pulls back in the near future.

Details below.

Today’s Bearish Biotech Bet