As the Heplisav FDA panel nears, I expect investor anticipation and speculation to increase causing Dynavax's share price to rise -- a nice set up for an 8-10 week BioRunUp swing trade. As always, make sure to close the Dynavax position before FDA releases briefing documents for the Heplisav panel on Nov. 12 -- two business days before the panel.
BioRunUp swing trading is also an effective biotech investing strategy for clinical trial data announcements. Nailing down the timing on a clinical trial swing trade is more difficult because companies rarely pre-announce a specific date for the release of data from studies. However, companies do often provide rough guidance i.e. late September or the fourth quarter.
Like with swing trades involving PDUFA dates, the knowledge that clinical trial results are pending tends to push biotech stock prices higher. The same phenomenon is at work: Investor hope and greed mix to create bullish momentum that accelerates as the expecting release of clinical data nears. BioRunUp traders profit by playing the run up in share price that precedes the release of clinical trial data. But again, remember the cardinal rule: Do not hold the trade into the event. If the swing trade works, a BioRunUp trader books a nice profit without having to risk worrying about whether a clinical trial produces positive results or not.
I've been able to turn a few thousand dollars into a few hundred thousand dollars in my personal trading account using the BioRunUp swing trading strategy. Subscribers to the BioRunUp.com trading community web site that I helped found have, collectively, booked millions of dollars in verified profits.In future columns for TheStreet, I will be discussing the BioRunUp strategy in more detail with actionable trading ideas. Messier is currently long Dynavax shares. Follow Mark Messier on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV