This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Volatile Drug Stocks To Watch

CHRIS LAU, KAPITALL Options activity may be used as a starting point for investors looking for companies that are expected to make big moves in the sessions ahead. As long as the share price of a company did not already have a big price swing, options with high volatility suggest bigger changes in stock prices. In the drug sector, investors could look at the option activity as a starting point for possible investing ideas. [View list snapshot here.]

1)  Amarin Corp. ( AMRN)

Screen shot 2013-04-01 at 2.36.41 PM

The implied volatility for Amarin shares is over 60%, with a high volume of contracts for an April expiry at a $7 exercise price. Amarin shares closed recently at $7.41. An analyst at Chardan Capital Markets recently ranked shares as a hold. The analyst cited that the chances of a takeover are low and risks in the Vascepa launch as a reason for an $8.50 target price.

Vascepa competes with Lovaza. Even if Vascepa proves to be the preferred drug, the risks for investors in the short-term are effective marketing and a strong sales team to support sales.


2)  Ziopharm Oncology ( ZIOP)

Screen shot 2013-04-01 at 2.36.57 PM Regardless of the high implied volatility for Ziopharm, investors should avoid the company. Fundamentals changed to the downside, and the future of the company is now uncertain. Ziopharm shares collapsed after reporting that its most advanced product that could trade cancer, failed in a late-stage study. With no products on the market, Ziopharm will face a cash crunch. The company is making immediate changes to its strategy, and will now focus on synthetic biology programs. Implied volatility is over 120%.


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $116.41 -0.27%
GOOG $691.93 0.13%
TSLA $238.02 -3.90%
YHOO $36.36 -0.63%
AAPL $93.17 -1.80%


Chart of I:DJI
DOW 17,685.20 -145.56 -0.82%
S&P 500 2,055.98 -19.83 -0.96%
NASDAQ 4,759.3580 -45.9330 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs