Biotech Trading: How to Trade ASCO 2013

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“Keep
up the good work,” a reader kicks off.  “I made a profit on 235% on MAPP
and 176% profit on ISIS calls.”

To
that, I say thank you… and offer a hearty congratulations.

It’s
our hope to provide even more explosive gains especially as we head into ASCO
2013, or the American Society of Clinical Oncology meeting held every year.

Every
one knows nothing has the power to send a biotech to the moon like the FDA.

Unless
that biotech is presenting at the annual American Society of Clinical Oncology
Conference (ASCO)


For
2012’s ASCO conference, we took a position in Celldex (CLDX) shortly before it
popped from $3 to more than $4… and before its run to $9.

We
also took a position in ImmunoCellular (IMUC).  It would run from $1.50 to
$2.50 for us. 

Array
Biopharma (ARRY) would run from $2 to $2.50.

And
Aveo Pharmaceuticals (AVEO) would run $13 to more than $21.

Those
gains were simply realized on the ASCO conference hype.

In
2011, we bought our favorite prostate drug stock, Dendreon (NASDAQ:DNDN) and
watched it explode from $35 to $55.

Heading
into the 2010 ASCO conference, we took a position in Delcath (NASDAQ: DCTH),
for example. It would run from a low of about $6 to more than $16 before
selling off after the event.

Another
big runner was Celldex (NASDAQ: CLDX). The stock ran from about $4.70 to a
pre-ASCO high of $9.43.

Here’s
what we profited from heading into the 2009 ASCO conference:

▪  
Seattle Genetics (SGEN) soared from $8.25 to more than $10.50

▪  
Pfizer (PFE) jumped from $13.25 to more than $15.50

▪  
Exelixis (EXEL) jumped from $4.25 to more than $6

▪  
And ArQule (ARQL) jumped from $3.95 to more than $5.

And
here’s what we profited from in 2008:

▪  
Immunogen (IMGN) flew from $3 to more than $4.75

▪  
Rigel (RIGL) climbed from a low of $20 to more than $24.50

▪  
Novartis (NVS) jumped from $50 to $54

▪  
And Infinity Pharmaceuticals (INFI) ran from $6.50 to $9.50

Does this mean ASCO stocks run every time, every year?

No. 
But that’s why we don’t pick just any stock…  We do our homework before
issuing any ASCO trades.

As
for 2013’s ASCO conference – held in Chicago, Illinois, May 31 to June 4, 2013,
here is what we’d recommend buying.  Options Wealth Insiders’ biotech letter has
the full list.

Do
we expect you to buy all of these?  No.

We’re
just offering you several ways to trade one of the most popular events of the
year.

Galena Biopharma (GALE) initiated a Phase I and II trial with a
targeted cancer vaccine that is “over-expressed in more than 90% of ovarian and
endometrial cancers.”  The company will present Phase I results at
ASCO.  There are two ways to trade GALE.  One, you can buy the
underlying stock under $2.20 and / or Buy to Open the July 2013 2 calls
(GALE130720C00002000) at market this week.

NewLink (NLNK) is presenting as well.  According to the
company, “The enrollment rate in our pivotal phase 3 IMPRESS trial with our
active cellular immunotherapy product candidate for resected pancreatic cancer,
algenpantucel-L, has exceeded our original expectations. We initiated both a
Phase 3 study in patients with locally advanced pancreatic cancer using
algenpantucel-L, and a Phase 2B/3 adaptive design study to evaluate our active
cellular immunotherapy using tergenpumatucel-L in patients with progressive or
relapsed Stage IIIB/IV non-small cell lung cancer (NSCLC). In addition, we
expect to move our HyperAcute melanoma immunotherapy into controlled phase 2
studies in 2013. We are also expanding our HyperAcute immunotherapy platform to
include different tumor types. Buy the underlying stock up to $13.

Other stocks to buy include ArQule (ARQL) 

All these recommendations have an equal chance of running up very nicely
heading into the 2013 ASCO meeting.  Trade safe.

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