I recently shared with you how we spotted a “cluster buy” on a biotech stock. We had no clue why the insiders were all buying, but we knew they knew something. So we bought.
Not long after, this firm got approved for a cancer treatment patent and discovered a way to reduce the COVID Delta variant’s replication.
Our position proceeded to skyrocket over a couple months. Just goes to show you that you don’t need to know what the company is doing.
Now, another biotech that delivered us profits once already is setting up for another opportunity.
See, this firm has several drugs coming down the pipeline. But that’s the case with lots of biotech companies. We aren’t sure which one will make this stock pop…
But the CEO and Founder definitely knows what’s going on… back in May and June, he bought $1.8 million shares worth a total of $5.1 million.
Yep, he scooped up 1 million shares worth a total of over $2.4 million in May. Then, he added another 823,000ish shares worth $2.7 million in a single day in June.
And what’s more, the buy came out of nowhere. No news, no big events, nothing to justify such a massive investment. Wonder why that could be? We had no clue… but that insider move was a huge signal to buy, buy, buy.
Lo and behold, the stock saw quite the run soon after each of the CEO’s big buys. Especially the second one. We closed out some of our stock holdings at a 29% gain and our options position at 66%.
But here’s the thing: with the overall biotech selloff, this pick is almost back to our original entry point. It’s ripe for an end-of-year rip, and we’re ready to jump on it at a moment’s notice.
If you want to take advantage of this stock’s next move and potentially round out the year with some hefty profits…