NEW DIRECTIONAL CALL PLAYS
Alkermes plc. - ALKS - close: 52.96 change: +1.36
Stop Loss: 50.65
Current Option Gain/Loss: Unopened
Time Frame: exit prior to March expiration or earnings in March
New Positions: Yes, see below
Why We Like It:
ALKS is in the healthcare sector. This Irish company is in biopharmaceuticals. The biotech industry resumed its up trend today and ALKS helped lead the charge with a +2.6% gain. The stock is poised to set new multi-year highs.
Regular readers know that we consider biotech stocks to be more aggressive, higher-risk trades. You never know when the wrong headline about some clinical trial results or FDA application process could negatively impact the stock. Of course those catalysts could also send the stock higher.
Use a trigger at $53.25 to open small bullish positions. If triggered our target is $59.00. However, we need to be nimble. ALKS is due to report earnings in March but there is not a confirmed date yet. We will plan to exit prior to the earnings announcement when it's revealed (or prior to March option expiration).
FYI: The Point & Figure chart for ALKS is bullish with a $91 target.
Trigger @ $53.25 *small positions*
- Suggested Positions -
buy the MAR $55 call (ALKS1422C55) current ask $2.05
Entry on February -- at $---.--
Average Daily Volume = 986 thousand
Listed on February 20, 2014