About

*Investing in publicly traded biotech companies involves extreme risk and loss of full capital. My personal experiences are presented here and do not constitute investment advice*

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Throughout my years of biotech investing, I have changed my style from a hopeful YOLO style of positioning to a more careful and incremental style of positioning. The buy-and-hold or cost-averaging styles of investing did not function properly for me in biotech investing. The extreme sharp rise in share prices consistently had me holding positions for too long while the sudden share price drops regularly pushed me out of positions. Thus, I have learned that timing my positioning with incremental investments is an optimal strategy to build a portfolio of biotech companies. I prefer to first identify a narrow time period in which trial results or other catalysts are to be released. If the results indicate a quarterly announcement, I wait towards the middle to end of the quarter to initiate a position; given results have yet to be released. I initiate and build a position in the biotech company using both call and put options in specific ratios in order to grab upside gains while limiting downside losses. 

• I identify the time period of expected catalysts

• I research the company, the candidate product, and the treatment landscape

• I wait to initiate a position so that time value diminishes in options contracts

• I initiate a position before the catalyst release using a combination of call and put contracts in a specific ratio

• I close the position that gained while the opposing position expires worthless