Sunday, January 07, 2007

January performance update

Click on the image below to see a table of my performance to date.

ARNA and AMLN remain the two negative open positions but I still think 2007 will be a good year for both of these stocks.

CELG has outpaced my expectations but I am still holding on to covered calls and I think the upside is limited for this stock in 2007. January 60 calls should make up slightly for the January 50 calls I had sold earlier.

I have added VRTX and CEPH based on valuations. I have also sold some VRTX April $20 puts which are way out of the money but have some value due to historical volatility of VRTX.

Of the non-biotech stocks. I have closed the ADBE (6%) and COH (25%) . I just don't like the chart of ADBE which looks like a resistance is being formed. Coach has had a nice run during the holidays but I am closing this great retailer. The rest of my non-biotech stocks all have international exposure and should withstand the expected upcoming slowing in the US economy. I am still holding a large cash position and expecting a correction in first half of 2007.



Anonymous said...

Do you have any recommendations on books about investing in biotechs?

JMHO said...

I have not read any books about investing in Biotech. I have seen some books on Amazon but my guess is that they are about general topics common to all biotech companies.

I have been lucky enought to have worked as a scientist for 11 years and now I am in finance.

I have read some analyst reports that are very informative. Other than that, I would suggest learning more about the diseases and the clinical trial process.

good luck!