The trade that will make the most money at the beginning of this year $XBI LONG JAN 14 118 C

XBI is a collection of biotech stocks. biotech stocks are mainly driven by M&A, as deals by larger companies re-appraise the valuations of these stocks and by discount rate. XBI is down 35% from peak, a lot of it since November why, because of TAX LOSS HARVESTING. PPl have lost so much in this piece of shit that they are getting rid of it to offset capital gains in other things hence the pressure you see here. When does tax loss selling end ? typically around 15 dec cf the nomura paper that just came out : Besides funds getting stopped-out out popular positions, there is also a spike in a substantial “Tax Loss” selling dynamic, where as McElligott notes, historically the peak of “tax loss selling” season is 11/1 through mid-Dec, as evidenced by the Wolfe “Potential Tax Loss Selling Basket” -13.9% over that period, underperforming SPX (+1.4% since 11/1) by 15.3%; underperforming QQQ (+1.6% since 11/1) by 15.5%; and underperforming IWM (-5.3% since 11/1) by 8.6% XBI is at the lows and has ignored during this phase a slew of good news on the M&A front; PFE's latest acquisition at a 100% premium being the greatest example of how cheap the major pharmaceuticals think stocks in the field are right now. Once the pressure ends, i suspect this thing will BOOM UP to 140 in short order BUY JAN 14 C 118 OR BUY LABU which is the 3x biotech etf I got 100k on this.

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The trade that will make the most money at the beginning of this year $XBI LONG JAN 14 118 C

bullish

XBI is a collection of biotech stocks.

biotech stocks are mainly driven by M&A, as deals by larger companies re-appraise the valuations of these stocks and by discount rate.

XBI is down 35% from peak, a lot of it since November why, because of TAX LOSS HARVESTING.

PPl have lost so much in this piece of shit that they are getting rid of it to offset capital gains in other things hence the pressure you see here.

When does tax loss selling end ? typically around 15 dec cf the nomura paper that just came out :

Besides funds getting stopped-out out popular positions, there is also a spike in a substantial “Tax Loss” selling dynamic, where as McElligott notes, historically the peak of “tax loss selling” season is 11/1 through mid-Dec, as evidenced by the Wolfe “Potential Tax Loss Selling Basket” -13.9% over that period, underperforming SPX (+1.4% since 11/1) by 15.3%; underperforming QQQ (+1.6% since 11/1) by 15.5%; and underperforming IWM (-5.3% since 11/1) by 8.6%

XBI is at the lows and has ignored during this phase a slew of good news on the M&A front; PFE's latest acquisition at a 100% premium being the greatest example of how cheap the major pharmaceuticals think stocks in the field are right now.

Once the pressure ends, i suspect this thing will BOOM UP to 140 in short order

BUY JAN 14 C 118

OR BUY LABU which is the 3x biotech etf
I got 100k on this.

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read-time
1 min

118.00

Target Price

7/ 10

Confidence

1-2 Months

Timeframe
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