Replies to post #190904 on Biotech Values

[biomaven0]

Well pretty clearly the environment is at very least bubbly. Given that, one can expect increased volatility here.

So you'll see some failed clinical trial, or some effort to rein-in drug prices, and the sector will drop sharply. But then you'll see some buyout come to the rescue.

I'm not sure the best way to play things in the sort run from a macro perspective. If there was a biotech-specific VIX that wouldn't be a bad instrument to hold here. Too expensive to try to recreate a proxy for it manually, although I suppose some OTM calls and puts on some biotech indices might be a reasonable substitute.

Peter