BioTech Stays Hot

BioTech Stays Hot

12:45pm (EST) The market is off to a good start as the bulls came out in a buying mood. The Dow is up 35 points to 9,476 but is off its highest levels of the day. There are a few BioTech stocks that are trading higher today. Facet Biotech (FACT, $16.12, up $0.74) is up 5% after it rejected Biogen Idec’s (BIIB, $51.32, up $0.31) offering of $14.50 a share. Facet said the $370 million buyout offer places no value on the operating and other assets of the company. Shares nearly doubled on Friday, rising from $8.82 to a high of $15.92. The stock has traded as low as $6 and as high as $50 over the past year. Biogen went “hostile” with the offer on Friday after an initial offer of $15 per share back in August. The two companies have jointly worked together on drugs for multiple sclerosis and a treatment for tumors. Opexa Therapeutics (OPXA, $3.82, up $2.29) is soaring, up 150% on news that its drug, Tovaxin, provided better-than-expected results in a mid-stage study of 150 patients with multiple sclerosis. There are no options on this stock but the shares opened at $2.33 this morning… I was thisclose to profiling a Jazz Pharmaceuticals (JAZZ, $10.39, up $1.12) trade this morning after noticing the action in the stock from Friday. There was no real news for the jump from $7 to $9 but volume was heavy as 12 million shares traded. The September 10 calls (JWQIB, $1.25, up $0.40) are up over 50% today after opening at 60 cents. These options expire in 10 days. This trade is probably too late to get in but the action from Friday was telling me something. Campbell Soup (CPB, $32.33, up $1.14) has broken through resistance of $31.75 and I profiled a possible trade in the Members Area this morning that has nearly doubled from this morning. If you got in right after the open set stops to protect your profits or close the trade by the end of the day. Anytime you make 75%-100% in a few hours, take Steve Miller’s advice…go on take the money and run. If you owned the stock and sold the call options for the premium then you also did well. Rick@MomentumOptionsTrading.com]]>

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