Biogen interns posing before their annual volunteer day (credit: Biogen).
Taking Advantage Of The Spike In Biogen
Shares of Biogen (BIIB) spiked nearly 20% on Friday after announcing positive results from the phase II clinical study of the Alzheimer’s drug the company has been developing in partnership with Eisai (OTCPK:ESALF), (OTCPK:ESALY). For readers looking to take advantage of that spike to add some downside protection to their Biogen stakes, I have posted a couple of ways of doing that below. After that, I've included a look at Portfolio Armor's updated potential return estimate for BIIB following Friday's price action.
Adding Downside Protection To Biogen
Let's assume you're long 500 shares of BIIB and are unwilling to risk a decline of more than 20% over the next several months. Here are two ways of hedging it (screen captures below are via the Portfolio Armor iPhone app).
