NEW DIRECTIONAL CALL PLAYS
BioMarin Pharmaceutical - BMRN - close: 93.11 change: +0.94
Stop Loss: 89.40
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 1.1 million
Entry on January -- at $---.--
Listed on January 05, 2014
Time Frame: Exit prior to February option expiration
New Positions: Yes, see below
Why We Like It:
BMRN is in the healthcare sector, more specifically the biotech space. Last year biotechs were some of the best performing stocks. The S&P 500 rallied +11% in 2014 while the NASDAQ gained more than +13%. Yet the IBB biotech ETF gained +33% while the BTK biotech index surged +48% last year. BMRN only rallied +28.5% in 2014 but they look poised to outperform this January.
The company describes itself as "BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company's product portfolio comprises five approved products and multiple clinical and pre-clinical product candidates."
They have several drugs in development. One of them is in Phase 3 trials for germline BRCA breast cancer. On their website they list three therapies in phase 3 trials, two appears to be in phase 2, while two more are in phase 1 trials. You can see the list here:
BMRN pipeline .
J.P.Morgan (JPM) listed six biotech stocks as part of their top U.S. stocks for 2015. BMRN was one of them. According to the Street.com,
J.P. Morgan said: We believe BMRN is uniquely positioned in biotech with an established and growing commercial portfolio, a broad and compelling late-stage pipeline, and an orphan disease focus. Vimizim has enjoyed a strong launch to date, and we suspect its true transformative potential could become increasingly evident in 2015. Perhaps even more importantly, BMRN should have an abundance of clinical news flow throughout the year that may captivate and retain investor interest. The list likely includes very important Phase 2 data for BMN-111 for achondroplasia in 2Q followed by pivotal data for PEG-PAL in PKU, BMN 190 in Batten disease, and BMN 701 in Pompe as well as initial human data for BMN 270 gene therapy in Hemophilia A.
Technically shares of BMRN appears to be breaking out from a three-week, sideways consolidation that occurred in December. The stock was showing relative strength today. Tonight we are listing a trigger to buy calls at $93.55.
NOTE: I am labeling this an aggressive, higher-risk trade because the option spreads on BMRN are pretty wide. I suggest small position sizes.
Trigger @ $93.55 *higher-risk, more aggressive trade*
- Suggested Positions -
Buy the FEB $95 CALL (BMRN150220C95) current ask $5.10
Option Format: symbol-year-month-day-call-strike