This Trade Risks Less Than $50 for a Potential Gain of 300%
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| This Trade Risks Less Than $50 for a Potential Gain of 300% | | Over the course of years, a new drug could move a stock by several hundred percent. That's why news about drug approval is important for investors to consider. In our latest article, we share the details of a drug approval process that could set up a triple digit gain for investors.
Based on actual recent market data, we highlight a trade with tremendous potential. The trade is based on the potential movement of the stock of a company that recently received news that the U.S. Food and Drug Administration granted fast-track designation for its investigational Zika vaccine.
This trade could result in a gain of 300% based on recent market data which we share with you. The total risk on the trade is $50, again based on data that we share with you.
Some investors may avoid high risk stocks, and any biotech stock is a high-risk trade, while the company is in the development and approval process. Investors may avoid these stocks because they may lack the capital to build a diversified position in this type of stock.
However, as we explain in the article, there are strategies that lower the capital required to trade these stocks.
We explain in detail, one such options strategy. This strategy is one that is focused on risk and is able to limit the risk to a precise level in dollar terms. In this trade, the risk is limited to $50 based on recent market prices.
You can find all of the details of the strategy and the specific trade in our latest free educational article that is available right here.
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