Pharma News Drives Sector
Somewhat of a reversal of fortunes has befallen major healthcare middlemen this week, and for them it’s good news. The Trump administration is doing a 180° on proposed changes to drug rebates that would have cost the healthcare industry.
The development is causing healthcare stocks to rise here in the premarket, and a few that have caught our eye in particular, are UNH, CI, and CVS. Each of these plays is flying high in early trading, so what we’re going to look for is a classic dip-and-rip scenario. Profit-taking right out of the starting gate should drive these stocks down off of their lofty premarket highs, and that’s when where we come in with the following ideas.
CVS Health Corp. CVS Weekly $57-58.50 Calls
Cigna Corp. CI $167.50-175 Calls
United Health Corp. UNH $250-255 Calls
PCG, NAVB, TRNX, OMER, ATOS, HTGM, DPLO, KBLB
Catalyst Pharma Inc. CPRX
We saw a very impressive new high for a stock that we’ve been tracking off of a bottom since February 8th. CPRX traded for as little as 2.36 that day, and has never looked back, spending most of the 7 weeks since then in a general uptrend that really kicked into high gear yesterday.
The stock ultimately reached 5.25 before closing just a penny below that point. That works out to an upswing of 122% in well under two months’ time.
Axsome Therapuetics, Inc. AXSM
Speaking of stock runners, we called out AXSM for observation just last Thursday, and wanted to drop back in on it to comment regarding its performance thus far. From a low of 11.75 on Thursday morning, the stock has now reached as high as 16.38. That’s a relatively modest but still very respectable gain of 39% in a span of just three sessions.
SRNE, BPTH, BE, VLRX, ZUO, ATOS, BOXL, VTL, RWLK, ZDGE
Baidu, Inc. BIDU – Update
On Friday morning, we had targeted the BIDU Weekly $250-255 Calls in the wake of the company’s quarterly earnings report, and while we didn’t see all the contracts in that range heat up, there was some very nice activity and a chance for a daily profit in the $250 Calls.
Those ran from a low of .46 and impressively hit a high of 2.97 for potential intraday gains of up to 546% which ended up working out to be one of our top plays of the week.
Fresh Options Idea:
McDonalds Corp. MCD Weekly $160-165 Calls
Aqua Metals, Inc. AQMS
We most recently tagged AQMS on April 4th, and after just a slight period of consolidation the stock found support and began a recovery which has covered a good amount ground this month.
From a low of 2.11 AQMS has traded as high as 3.56, a 69% increase in a matter of just a few weeks.
ARLP, SDRL, AKAO, WPP, FDC. TEUM, ATOS, DARE