Trading FDA, Clinical Trial Binary Events with Revised Bio Run-Up Strategy: $AMRN $CADX $EXAS

By Mike Havrilla on 06/30/2010 – 5:28 pm UTC


Written by Tyler Trimbath. When playing a bio run-up stock in a down market, it may be useful to adjust your strategy…

Several weeks ago I wrote an article on the bio run-up strategy explaining how a first-time investor should develop a strategy and stick with it.  At this point we are in a market that fluctuates every minute, but this does not necessarily mean abandoning what works for you since right now may be a good time to buy.

Adjusting your strategy to fit the market and continuing to make money is what needs to be done.  Some of my “rookie” suggestions include:

- focus on companies that have upcoming FDA decisions (1-2 months out) instead of the normal three to six months;

- keep searching for companies with less than a $500 million dollar market cap and single-digit stock prices; and

- downsizing my basket to three stocks, which will allow me to diversify my portfolio but still make it easy to keep track of each holding on a daily basis. 

This is my revised bio run-up plan as a new investor looking to make money trading binary events.  My holdings now include Cadence Pharma (NASDAQ:CADX), EXACT Sciences (NASDAQ:EXAS), and Amarin Corp. (NASDAQ:AMRN).

Continue to read information that will keep you ahead of the game on sites like and Also, keep in mind that as an investor, experienced or rookie, the most important tool is having access to current information. is your prescription for stock index investing updates focused on the healthcare sector, medical innovation, and pending binary events such as FDA decisions and clinical trials. The actively managed HavRx Regulatory Catalyst Index update report is currently tracking 588 entries and 393 companies (including approximately 200 stocks trading under $5 per share and 54 private companies). Promo codes (50% discount) are available for college students, investment clubs, and subscribers to my previous FDA Calendar or similar services.

Disclosure: Long AMRN, CADX, EXAS

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