COVID-19 completely transformed the narrative surrounding biotech stocks. Now it’s more difficult than ever to find an undervalued biotech stock that’s worth investing in.
Once the pandemic hit, investors pumped billions of dollars into start-up biotech drug companies — fueled by the hope of finding a vaccine amid total economic lockdown. U.S.-listed biotech companies received almost $20 million in venture capital (the money investors all but threw at the start-ups with the most growth potential) through September.
While traders are tripping over themselves to invest in the companies leading the race to find a cure, a certain undervalued biotech stock is being overlooked…
Unlike most stocks and businesses, which generally generate wealth linearly and not exponentially, biotech stocks can spawn a large amount of wealth quickly as long as the company has successful news of treatment.
So finding an undervalued biotech stock is like hitting the jackpot.
Just take a look at Pfizer’s (NYSE: PFE) overnight success after the CEO announced successful results from Phase 3 of its COVID-19 vaccine trial… and with investors foaming at the mouth to get a share of Pfizer while they can, Wall Street silently made a move on this undervalued biotech stock.
When first looking at this biotech company’s chart, it doesn’t seem like the stock has done too much recently. You might even call it a little choppy…
So when New Money Crew Head Trader Joshua Belanger came across this hot new trade on the options market, I had no choice but to take a closer look.
And wow, if what Josh is saying is right, an investor just put down $1 million on the certainty that this undervalued biotech stock is going to go up 13% by the mid-December… and the potential payout could be $8 million…
You see, when someone buys call options, they’re only looking for prices to go higher. And someone putting that kind of money on the line is willfully putting themselves in an all-or-nothing situation. It could either break their trading account or deliver a kingdom of wealth with a single trade.
Watch today’s video to see the undervalued biotech stock and get the ticker symbol. And after you watch the video below, leave a comment. Have you been trading biotech stock more in 2020? If so, what are your favorite names? Let me know!