Grab 100% Partial Gains on Bioverativ Calls

Our Bioverativ (Nasdaq: BIVV) October $55 calls have doubled. With healthcare and biotech so volatile and with a lot of potential news coming out of Washington that could affect the sector in the next several days, I want to grab some partial gains on this position.

We’ll take our risk capital off the table and play with the house’s money.

Action to Take: Sell half of your Bioverativ (Nasdaq: BIVV) October $55 calls for $8.55 or more. The spread is wide, so be sure to get filled between the bid and the ask.

We’ll also raise the stop on the stock up to our break-even point to ensure a winner doesn’t become a loser.

Action to Take: Raise your stop on Bioverativ (Nasdaq: BIVV) to $51.95.

No big news on AbbVie (NYSE: ABBV) this week, though the stock hit a new all-time high.

You know what that means. Time to raise the stop.

Action to Take: Raise your stop on AbbVie (NYSE: ABBV) to $61.03.

Biotech Humming Along – Raise Stops

 Many of our biotech shares have been strong over the past week.

Optimism over a lenient new FDA may be partly responsible for the run-up. Recent positive developments in cancer treatments have also sent the sector to new highs.

Our iShares Nasdaq Biotechnology Index ETF (Nasdaq: IBB) position broke out of its range and climbed above $300 to a new high.

We could get a strong reaction once the Republicans’ plan for healthcare reform hits the wires, so be aware.

In the meantime, let’s raise the stop.

Action to Take: Raise your stop on iShares Nasdaq Biotechnology Index ETF (Nasdaq: IBB) to $266.21.

FibroGen (Nasdaq: FGEN) also hit a new high as the sector has risen. Let’s raise the stop on this one as well.

Action to Take: Raise your stop on FibroGen (Nasdaq: FGEN) to $25.32.

Ligand Pharmaceuticals (Nasdaq: LGND) is breaking out of its trading range. The company will receive a milestone payment from Melinta Therapeutics since Baxdela was approved to treat skin infections. Melinta uses Ligand’s Captisol technology.

Ligand will receive a $1.5 million payment plus a 2.5% royalty on Baxdela sales.

The stock hit a new high since we’ve been in it, so let’s raise the stop.

Action to Take: Raise your stop on Ligand Pharmaceuticals (Nasdaq: LGND) to $97.92.

Manpower Hits New High

 In nonbiotech news, ManpowerGroup (NYSE: MAN), one of our Trump 10 stocks, continues to hit new highs. No news on the company. Manpower will report earnings one month from today.

In the meantime, we’re going to protect more of our profits, so let’s lift the stop again.

Action to Take: Raise your stop on ManpowerGroup (NYSE: MAN) to $95.98.

Hoping your longs go up and your shorts go down,

Marc

To view the current Lightning Trend Trader portfolio, click here.

Important Note: Sell stop recommendations are based on closing prices, not intraday prices. If a position closes below the suggested stop, sell your shares at market during the next session.