I made three moves this afternoon.

music selection:  “Situation” — YAZ

I had a couple of “melt-up” plays in double leveraged instruments.  Expecting tech and biotech to soar as the markets ran away, I took about 7,500 in position size in both ROM and BIB on 3MAY2021.  I sold those today for 2,772 in gains.  I am probably selling “too early” but want to raise cash for a 50%+ correction in the next couple years.  Could be Monday?

I also have a position in BIIB.  I bought a bull call spread thinking the approval of it Alzheimer’s drug would cause the stock to slowly climb. Instead, the approval became controversial and the stock has tanked since the initial approval spike.  That position is now 16% out of the money with two weeks left to trade.  I sold 11 of 18 spreads today for 9 cents apiece.  I booked 2,816 in losses or 96.7%.  I still have seven spreads to try to unload on Monday.  If today were the third Friday expiry, closing of all my remaining open positions for July would result in 3,243 in realized profit for the month.

Much better than last month.  I can probably squeeze another 60 bucks or so of recovery out of the remaining 7 BIIB spreads.  I am also hopeful that CCI will rally 1.56% or more in the remaining two weeks.  That would bring my profit for the month to 8,787.  With the market in a strong uptrend and new highs being hit daily, it is a real possibility.

Devour your prey raptors!

Friday trades

Never miss another opportunity to devour prey!

4 thoughts on “Friday trades

  • July 3, 2021 at 1:34 am
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    Related to the BIIB trade, I bought calls in Novo Nordisk (NVO) because they’ve just repurposed a diabetes drug for weight loss. It costs four figures a month and leads to dramatic weight loss while the patient is on it. This is a bigger market than Viagra and probably higher margins. I’m up 8%.

    Reply
    • July 3, 2021 at 8:03 pm
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      Chris,

      I looked at the NVO diabetes drug as a weight loss play. Decided to pass as the drug would only be worthwhile to a narrow subset of the overweight population. There is a nearly universal side effect that is described as “greasy anal leakage”. If Type II is literally going to kill you in a short period of time, you take it and wear an adult diaper. If you are just fat? Better off getting bariatric surgery.

      Reply
  • July 6, 2021 at 8:50 pm
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    man I wish I had known sooner that you were considering a bull BIIB position. I’ve been following aducanumab for many months and I knew what crap it was and how the positive results were just a shell game. And also 6% of patients in that key group got “brain bleeds and/or brain swelling”. I’ve basically made a cottage industry out of selling BIIB calls ever since the approval, but I no longer have any positions, although there is probably more pain to come for BIIB.

    I expected it to not make nearly as much money as folks expected, and perhaps for aducanumab to get pulled/shunned after media reporting of deaths/problems from non-study patients. I _didn’t_ expect there to be such a swift and negative response in the mainstream media, so the stock drop has happened much more quickly than I thought.

    In the end it’s probably luck but this was a rare high-conviction trade for me.

    Reply
    • July 7, 2021 at 8:16 pm
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      Well done skeptic. I sold a put at 280 last April. It is well out of the money, but you have persuaded me I should close it now and book my $4,000 or so in profits. First thing in the morning.

      Reply

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