I have my eyes on a biotech stock today which financial professionals do as well.
I had a five-figure week last week, and here’s how I want to make it happen again this week.
| Ticker Code | Ticker Name | Ticker Industry | Ticker Market Cap | Price Change | Average Volume (50)* |
| INO | Inovio Pharmaceuticals Inc | Biotechnology | $2,256,035,700.00 | 16.75% | 24,612,011 |
| EDSA | Edesa Biotech Inc | Biotechnology | $52,002,328.00 | 45.14% | 2,050,253 |
| SRNE | Sorrento Therapeutics Inc | Biotechnology | $970,185,638.00 | 19.58% | 54,723,243 |
| NOVN | Novan Inc | Biotechnology | $36,978,976.00 | -2.13% | 17,059,765 |
| NBRV | Nabriva Therapeutics PLC – ADR | Biotechnology | $118,089,086.00 | 4.82% | 10,901,455 |
| NVAX | Novavax, Inc. | Biotechnology | $3,752,845,250.00 | 31.03% | 12,018,437 |
| AYTU | Aytu Bioscience Inc | Biotechnology | $182,797,325.00 | 3.95% | 10,376,380 |
| MGEN | Miragen Therapeutics Inc | Biotechnology | $67,408,220.00 | 31.50% | 2,400,086 |
| MRNA | Moderna Inc | Biotechnology | $25,798,471,806.00 | 8.68% | 27,172,821 |
| ZYNE | Zynerba Pharmaceuticals Inc | Biotechnology | $150,704,039.00 | 9.60% | 1,690,588 |
| VBIV | VBI Vaccines Inc | Biotechnology | $666,572,744.00 | 27.34% | 12,963,708 |
| MNKD | MannKind Corporation | Biotechnology | $411,356,328.00 | 26.42% | 3,223,978 |
| TRVN | Trevena Inc | Biotechnology | $166,130,544.00 | 14.19% | 2,998,534 |
| AMRN | Amarin Corporation plc | Biotechnology | $2,664,466,919.00 | 2.17% | 7,534,981 |
| CAPR | Capricor Therapeutics Inc | Biotechnology | $70,464,160.00 | 9.92% | 1,756,385 |
| IFRX | Inflarx NV | Biotechnology | $137,834,405.00 | -54.92% | 1,034,882 |
| SNSS | Sunesis Pharmaceuticals, Inc. | Biotechnology | $61,991,335.00 | 27.27% | 2,526,379 |
| IBIO | Ibio Inc | Biotechnology | $176,099,535.00 | -14.97% | 11,260,454 |
| CLDX | Celldex Therapeutics, Inc. | Biotechnology | $481,861,524.00 | 76.73% | 5,022,610 |
| HTBX | Heat Biologics Inc | Biotechnology | $63,343,222.00 | -18.67% | 11,411,422 |
Biotechnology stocks have been hot in 2020 as the race for a COVID-19 vaccine is in full effect. And it’s no secret… the executives of the first biotechnology company who can produce an effective COVID-19 vaccine and produce it in mass quantities will likely become very rich, very quickly as a result.
So while the global population may be awaiting an effective vaccine before resuming travel, being in public, or vacationing, biotechnology companies are racing against each other to be the first to produce an effective vaccine which can be supplied in adequate quantities as I would assume they’d want the positive reputation and financial benefits which may follow as a result.
Moderna Inc (NYSE: MRNA) is the latest biotechnology company rumored to be in the race for the production of an effective COVID-19 vaccine, and financial professionals have their eyes on this stock heading into a new trading week.
Now you may be wondering… “it’s cool that financial professionals are looking at a stock, but how do they trade it?” I’d ask myself the same question if I was a new trader!
When financial professionals trade these stocks, they typically make big bets in dollar sizes which retail traders just simply can’t match. When they trade options in six-figure dollar orders, it’s referred to as unusual options activity – which I can track using my paid software.
When financial professionals trade stocks, they almost always do it through the dark pools – these are secret exchanges which are hidden from the public to avoid disruption of the markets. If retail traders and shareholders witnessed $100M worth of stock being traded (which does happen on the dark pools), they’d simply flip out. The news would have too much fun talking up the drama, and newer traders especially would just be scared…
But not me… I keep a close eye on those exact trades, isolate them, and if I like them I take the exact same moves myself.
That’s what I’ll be looking to do with MRNA today and through the rest of this week – get in while Wall Street gets it, ahead of a swarm of uneducated retail traders who are typically happy to chase moves higher after the move has happened (which is when I typically sell out of my positions).
Often referred to as smart money, when financial professional trades go off in the dollar amounts which they indeed do ($1M, $50, $100M) and they’re backed by a catalyst and a clean technical pattern, that’s when I become interested, consider making a move myself, and oftentimes experience a high-yielding return as a result.
Shown in green in the chart above, MRNA is resting on its 20-day simple moving average line support. I’ll be waiting for the smart money to pile in above it, and consider making the same move myself.
On a final note, to learn more about unusual options activity and the dark pools, you can find extensive education on my YouTube channel (click here).
Yours for TrackStar trading,
Davis Martin
America’s #1 Options Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.