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Posts Tagged ‘REGN’

Regeneron Pharmaceuticals (REGN) Retreats to Notable Technical Support

Monday, October 26th, 2020

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

REGN has been in the spotlight ever since President Trump received its antibody treatment earlier this month, check out what the following two articles have to say about the company  – 3 COVID-19 Antibody Stocks That Are Leading the Race and Is Regeneron a Buy Before Nov. 3?

Technicals

Horizontal support at $562 is quite important for REGN as it acted as resistance back in 2015 to trigger a major reversal. The level has halted the decline that started over the summer and there are some signs that the upward cycle could continue once again. In addition to the horizontal level, there is a rising trendline in play that originates from the low in early September and the 200-Day moving average is rapidly rising to converge towards the $562 price point.

REGN Chart October 2020 - Top 3 Covid-19 Antibody Stock

REGN Chart October 2020

If you agree there’s further upside ahead for REGN, consider this trade which relies on the stock remaining above the $577.5 level through the expiration in five weeks.

Buy To Open REGN 27NOV20 577.5 Puts (REGN201127P577.5)
Sell To Open REGN 27NOV20 580 Puts (REGN201127P580) for a credit of $1.03 (selling a vertical)

This credit is $0.02 less than the mid-point of the option spread when REGN was trading near $580.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will be only $1.30 per spread.  Each spread would then yield $101.70. This reduces your buying power by $250 and makes your investment $148.30 ($250 – $101.70).  If REGN closes at any price above $580 on November 27, both options will expire worthless, and your return on the spread would be 69% ($101.70 / $148.30), or 718% annualized.

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates October 24, 2020

IBD Underlying Updates October 24, 2020

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Regeneron Pharmaceuticals (REGN) Rallies to Two and a Half Year High

Monday, March 9th, 2020

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

While many companies have seen a sharp drop in their stock price as a result of the Coronavirus, REGN has broken to levels not seen since September 2017. Take a look at the following two articles for details – Regeneron (REGN) Gains from Focus on Coronavirus Treatments and Why Regeneron Shares Rose 31.6% in February.

Technicals

The weekly chart below shows REGN breaking higher from a downward trend channel that has contained price action for nearly five years. This type of upward break usually signals a bullish continuation. On a daily chart, the stock also shows strong upward momentum and technical signs of breaking out. The main appeal to this stock is that it is notably outperforming in a period where the markets have generally been under pressure. Further, the stock is benefiting from the same driver that is otherwise creating downward pressure in the broader equity markets.

REGN Chart March 2020: Coronavirus testing

REGN Chart March 2020

If you agree there’s further upside ahead for REGN, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open REGN 09APR20 490 Puts (REGN200409P490)
Sell To Open REGN 09APR20 492.5 Puts (REGN200409P492.5) for a credit of $1.18 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when REGN was trading near $494.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $1.30 per spread.  Each contract would then yield $116.70 and your broker would charge a $250 maintenance fee, making your investment $133.30 ($250 – $116.70).  If REGN closes at any price above $492.5 on April 09, both options would expire worthless, and your return on the spread would be 88% (1004% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates March 7, 2020

IBD Underlying Updates March 7, 2020

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Will Regeneron Pharmaceuticals Continue to Outperform Its Sector?

Sunday, February 24th, 2019

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.  The actual Terry’s Tips portfolio that trades these ideas of the week has gained 148% in the first two months of 2019.  Of course, past results are not always duplicated in the future, but we like our chances here.

Terry

Will Regeneron Pharmaceuticals Continue to Outperform Its Sector?

Regeneron Pharmaceuticals (REGN) has been a long-term performer, see what these two analysts have to say about the company moving forward – Why I Like Regeneron Pharmaceuticals, Inc. and Is Regeneron Pharmaceuticals Stock Outpacing Its Medical Peers This Year?

The main technical appeal to REGN is its ability to hold above a horizontal level near $410 that held the stock lower late last year.  The level is now seen as strong support and recent price action seems to support that as a dip following their recent earnings report was bought up near the level.  There is some confluence at the price point as the 50-Monthly moving average is slightly above it.  The stock trades within a rising trend channel that originates from a low in May last year and the upper bound of the channel currently falls around $450-$460.

REGN Chart February 2019

REGN Chart February 2019

*source Tradingview.com

If you agree there’s further upside ahead for REGN, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open REGN 29MAR19 417.5 Puts (REGN190329P417.5)
Sell To Open REGN 29MAR19 420 Puts (REGN190329P420) for a credit of $1.18 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when REGN was trading near $423.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $115.50 and your broker would charge a $250 maintenance fee, making your investment $134.50 ($250 – $115.50).  If REGN closes at any price above $420 on March 29, both options would expire worthless, and your return on the spread would be 86% (981% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates February 21, 2019

IBD Underlying Updates February 21, 2019

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

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