In today’s Super Seasonals: Trade of the Week we will look at Incyte Corp (INCY).
Incyte Corp. is a biopharmaceutical company, which engages in the discovery, development, and commercialization of proprietary therapeutics.
Currently the medium-term trend of the industry (Biotechnology) and the sector (Healthcare) are in a bearish mode. These trend modes typically don’t last for months and months on end, eventually the market has a tendency to rotate the industry and sector, so maybe that time will come in short order to revert to the upside.
Recent news is a bit mixed…banks lowered price targets, but they remain a buy/hold rating on the stock. Also, recent quarterly profits were good…
Below is a snippet of the seasonal stats…starting roughly next week until year-end…
83% of the time, over the past 30 years, the Average Move Up is +20%.
Below is a Daily chart of the stock. The stock is oversold, in my opinion. This is a mean reversion play, which might not be for some traders. There’s a dozen other ways to play the stock, unfortunately I gotta give just one idea.
A potential area to buy shares may be around $50. There’s solid pivot support below that area, which might be a good place to see how price reacts as well. If the price breaks through that area and down to $45, just get out, if you’ve bought shares. There’s an upside Gap at $62.50, maybe the stock tries to rally and fill that gap in the coming weeks/months
If a reader is bullish today, here’s a potential Bull Call Debit Spread to consider, but try for a LIMIT of 10-20% better pricing based on current mid-price of $2.55, meaning a LIMIT of $2.00-$2.25 fill price.
Risk graph with a $2.55 mid-price…
As you likely know, there are literally dozens of solid ways to approach trading Incyte Corp (INCY) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on Incyte Corp (INCY) and other solid seasonal opportunities click here SuperSeasonals . For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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