Big Biotech Movers: IBB, MNKD, BLUE, FLDM, and AQXP

Biotechs are having another bad day, as evidenced by the iShares Nasdaq Biotechnology ETF's (IBB) sharp drop

Aug 7, 2015 at 12:51 PM
facebook twitter linkedin


U.S. benchmarks are trading are lower today, as traders weigh the latest nonfarm payrolls report against the possibility of a September interest-rate hike. Additionally, a continued sell-off in biotechs -- as evidenced by a more than 2% plunge in the iShares Nasdaq Biotechnology ETF (IBB) --  is pressuring the Nasdaq Composite (COMP) to another loss, with the benchmark off nearly 0.9% at last check.

Put players are turning in a quick response to IBB's drop, with volume running at three times what's typically seen at this point in the day. Eleventh-hour speculators betting on even more losses through tonight's close appear to be buying to open the weekly 8/7 360-strike puts, while traders with a slightly longer-term -- and more bearish -- outlook are purchasing new positions at IBB's weekly 8/14 355-strike put. At last check, the exchange-traded fund was lingering near $362.50.

Drilling down on specific equities, MannKind Corporation (NASDAQ:MNKD) is off 1.5% at $4, extending its analyst-induced week-to-date decline to 6.8%. This volatile price action could continue next week, when MNKD joins a number of other notable names in the earnings confessional.

bluebird bio Inc (NASDAQ:BLUE), meanwhile, has plunged more than 16% to $131.65. Sending the shares to their lowest point since early May is a wider-than-expected second-quarter loss and revenue miss. The security is now in danger of closing south of its 140-day moving average for the first time since May 2014.

Having its worst day ever -- literally -- is Fluidigm Corporation (NASDAQ:FLDM), with the stock off 37% at $12.53, and fresh off a record low of $10.90. The company turned in lower-than-expected second-quarter sales, and downwardly revised its full-year revenue forecast, prompting a downgrade to "neutral" at Piper Jaffray, and price-target cuts from Mizuho (to $15), Cowen and Company (to $15), and Leerink (to $28).

On the other end of the spectrum is Aquinox Pharmaceuticals Inc (NASDAQ:AQXP), which has surged nearly fourfold to $6.91, after the firm yesterday announced positive mid-stage trial results for its bladder pain treatment. Additionally, AQXP said its second-quarter loss was less than Wall Street was expecting. The stock is now in the green on a year-to-date basis, and has effectively filled its early July bear gap.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners