TheOptionPlayer.com sets up a Incyte Corp. (NasdaqGM: INCY) short-term (29-day) option strategy (Based on Thursday’s closing quoted bid/ask mean)
The difference between funds paid out and received is a $1.13 per share debit maximum risk for this trade. The maximum profit is approximately $8.00 per share if Incyte Corp. shares move higher prior to the option contract expiration date. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
As evidenced in the chart below shares of Incyte Corp. (NasdaqGM: INCY) led the S&P 500 higher today, rising almost 7% as clinical trial data boosted confidence about its experimental cancer drugs. After reporting a quarterly loss over a week ago Incyte’s stock crashed to its lowest level since early January. It appears news about promising cancer data started leaking out this week. You can see how Incyte stock price bottomed out this week and actually started surging higher even as the overall market fell. Momentum is turning bullish from being oversold as Incyte shares exploded through recent resistance and appears headed toward the highs from the middle of April. Incyte stock is setup for a relatively low risk, high profit opportunity if the price follows through on the bullish signals.
52-Week High: $152.66
52-Week Low: $72.47
Regular www.theoptionplayer.com subscribers can attest to the preponderance of successful trades published on this website
The information presented here is for educational and informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.