Incyte (INCY) – COVID-19 Treatments – May 25th, 2020

Bullish – INCY – $99.37

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Market Outlook:
The S&P 500 (SPY) started the week strong with accommodative rhetoric from the Fed president and optimism on a COVID-19 vaccine. Despite initially breaking out of a trading range, markets traded mostly sideways with volatility remaining fairly stable and oil stabilizing around $32. With broader participation this week, we remain cautiously bullish, despite continued signs of market exhaustion. 

INCY Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at Biotech company INCY, with Phase 3 trials for their drug Jakafi to suppress the immune response that causes lung damage. With the recent consolidation between $95 and $105, INCY is primed for a breakout higher. Expecting INCY to breakout, Tony suggests buying a July $100/115 Call Debit Spread @ $4.60 Debit. As of Friday’s close, this spread was trading at a $5.00 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: INCY Options Action Trade


Market Outlook Update

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