NEW BULLISH Plays

Isis Pharmaceuticals - ISIS - close: 39.25 change: +0.61

Stop Loss: 37.65
Target(s): 47.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 05, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
ISIS is in the healthcare sector. The company is a biotech firm with a pipeline of 28 drugs in development. Biotech stocks in general have been strong performers this year. ISIS actually tagged a new all-time high on an intraday basis today. If shares can breakout past round-number resistance at $40.00 the stock might see another sprint higher.

I am suggesting small bullish positions if ISIS can trade at $40.25. If triggered our target is $47.50.

Biotech Stock Warning
Regular readers know that I label most biotech stocks as higher-risk, more aggressive trades. We never know when a headline might surface about some approval process or clinical trial that could send the stock gapping lower (or higher). We want to keep our position size small to limit our risk. If options are available then investors may want to buy an option to limit your risk to the cost of the option.

Trigger @ 40.25

Suggested Position: buy ISIS stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the 2014 Jan $42 call (ISIS1418a42) current ask $2.15

Annotated chart: