We’re all waiting on one thing…
The race for the Covid-19 vaccine.
One of the biggest stories in the world right now is the race to the Coronavirus vaccine. But it’s been months of waiting, and while we’ve heard whispers of a possible vaccine hitting the market, we’ve seen setback after setback.
For instance, Johnson & Johnson recently announced it would be pausing trials for its vaccine after a volunteer got sick. British multinational drug company AstraZeneca was forced to halt its trials last month as well. And in shocking news, Eli Lilly – the marker of the antibodies supported by President Trump paused trials this week as well.
And questions from regulators continue to linger.
Where’s the money?
Despite the hold-ups, though, traders have continued to throw their money into biotech and pharma stocks – hoping to grab their piece of profit when the vaccine goes to market. And it makes sense seeing that drugmakers and biotechs are working around the clock to bring the vaccine to life – but that doesn’t mean there’s a profit opportunity there.
And no one can be entirely sure when the vaccine will be hitting the market. So, you could be tying your money up in a stock, waiting for a breakthrough to come, all while missing other lucrative profit opportunities.
So, when it comes to playing the race to a vaccine – here’s how I think it should be done…
How do I get some?
I’ve never been a fan of trading the headlines. But when it comes to trading the news surrounding the vaccine, you’re playing a losing game. Because when it comes to this situation – there seems to be a new update, direction, hiccup, or focus every single day.
On top of this, vaccines have never been the most profitable business when looking at the past. So, you have to ask yourself – when the vaccine comes out, how good will it be, and how much can they make off it?
In reality, I believe the market will move more on stimulus news and the upcoming election. So, instead, I’ll be looking to set myself up for some fast cash with SPY call spreads – so I can ride that bullish market wave straight to the bank.
In the spotlight: Another blow for airlines…
It seems like every day we see another piece of disappointing news coming from the airline sector. And this time, the bearer of bad news is United Airlines. The globally known aviation company posted its third substantial quarterly loss of 2020.
The airline carrier posted a $2.4 billion loss. And that loss grew when special items were added, totaling a $2.6 billion loss. It also reported a net loss of $1.8 billion. Both of these losses exceeded not only analysts’ forecasts but also the company’s second-quarter losses.
And these losses were delivered by what you would expect – a massive drop in air travel brought on by the coronavirus pandemic. And as we talked about earlier this week, airlines are expecting to lose around $10 billion in losses for the quarter – and with the recent reports, the industry seems to be right on track. And stocks are moving down with them.
Now, with these downturned prices, it can be intriguing to get into these stocks for a discount. But I would avoid any airline name for now – at least until we see a vaccine coming to market.
Looking at the Whole Picture…
Sometimes I don’t know what to think. The cruise line situation is a perfect example, with an ending regulation and a potential vaccine brightening an otherwise dim outlook for this industry.
Thankfully I use an emotionless and non-speculative method to help me decide what to do with a particular stock…And that method is simply following my S.C.A.N. trading algorithm.
As I mentioned above, it helped me formulate a way to play a bleak forecast in the cruise industry for the best chance at profits…
And I want to show you everything else it can do, right here.