Good news for this drug sets up a high-income trading opportunity

News Could Deliver a 56% Gain on This Stocks...READ MORE
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News Could Deliver a 56% Gain on This Stocks

As a drug moves towards approval, a stock's price can be volatile. That was certainly true for the drug company that we feature today. But the company did secure one level of approval for its drug and then announced that the price would be $1.8 million over five years.

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The drug treats beta thalassemia, an inherited blood condition that leads to low levels of red blood cells and oxygen in the blood. The overall condition is fairly common, according to the NIH, but children and adults with severe forms of the disease can face life-threatening effects like liver, heart and hormone problems.

Those risks mean the high price could very well be justified for many patients. But as is often the case, the stock's price might not rally on news of approval. That doesn't mean the stock can't be profitable for traders as we explain in our latest article, and this stock could provide significant income for aggressive income traders.

As we explain in detail, we use an options strategy that is focused on risk and the risks of the trade are strictly limited at the time the position is opened. We show what the amount of risk is in dollar terms and we also detail the potential gains of the trade which is 56%, based on actual recent market data.

You can continue reading about this in our latest free educational article that is available right here.

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