Options Bears Break Bank With Biotech Stock Puts

Multiple layers of resistance were pressuring ImmunoGen stock

Deputy Editor
Aug 8, 2023 at 3:11 PM
facebook X logo linkedin


Subscribers to Schaeffer's Event Trader service scored a 272% profit with our  ImmunoGen, Inc. (NASDAQ:IMGN) August 17 put recommendation. Below, we will take a closer look at why IMGN was on our radar, and how the trade ultimately unfolded.

We recommended the ImmunoGen trade on Aug. 2. At that time, the biotech stock had run into resistance at its 20-day moving average and broken below its 50-day trendline following second-quarter earnings. The $19 area also rejected IMGN, and is home to a 38.2% retracement of its 2000 highs and 2016 lows. 

The security was also ripe for a round of analyst downgrades. This is per the nine of 11 covering brokerages that called ImmunoGen stock a "strong buy," against two "hold" ratings.

Plus, options traders were more call-heavy than usual. At the time, IMGN's 10-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sat higher than 14% of readings from the past year. This implies options traders favored bullish bets over the previous two weeks.

The day after our put recommendation, ImmunoGen stock dropped nearly 3.5%. The stock settled near the $14 level by the time we closed our position on Monday, Aug. 7 following a 16% dip, allowing our subscribers to lock in a 272% profit in less than a week.

IMGN Chart 2 August 82023

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI