Pfizer is having a great time in the market recently after making a commitment to move to Phase 3 studies of its breast cancer drug candidate. Today, we’ll talk about the details of the new study, how investors reacted, what we can expect from the stock moving forward, and how binary options traders can make profit trading the trends.
Details Of The Study
Pfizer recently announced that it plans on moving forward with Phase 3 studies looking into Ibrance; it’s experimental breast cancer drug. The company will be working in conjunction with the Alliance Foundation Trials and the Austrian Breast & Colorectal Cancer Study Group during the study. The study will take place as a two-arm, international, multicenter, randomized, open-label study. The ultimate goal of the study will be to determine whether Ibrance improves disease-free survival rates and prevents the disease from recurring in patients with hormone receptor-positive, human epidermal growth factor 2-negative early-stage breast cancer when added to the current standard of treatment.
How The Market Reacted To The News
The commitment to start the study came on Friday, August 28th, and as investors would imagine, the news pushed the stock up. On Friday, Pfizer gained more than 3% in the trading session. However, the stock wasn’t immune to the negative effects of market sentiment on Monday as it gave up just about all gains. Nonetheless, we are seeing more positive activity from Pfizer in the market today; and barring any market turmoil, we should see upward movement overall.
What We Can Expect To See Moving Forward
Under normal circumstances, when positive news comes out in the biotechnology space, we generally see gains. However, what we’re seeing in the market recently is anything but normal circumstances. If you’ve been watching market activity over the past week and a half, you know that we are experiencing a bit of a correction; and in my opinion, declines are likely to continue. However, with positive news, we can expect to see more upward movement in Pfizer than in other assets. So, be prepared for a roller coaster ride as this one proves to be one of the ultimate battles between the bears and bulls.
How To Trade The Trends Moving Forward
Markets are volatile at the moment, there’s no denying that fact. However, as mentioned above, Pfizer is likely to see more gains than the average stock as a result of the overwhelmingly positive news surrounding their experimental breast cancer treatment. This will create somewhat of a roller coaster pattern in the value of the stock. As a binary options trader, you have the ability to make profit no matter which way an asset is moving; which makes this roller coaster the perfect asset to trade.
To trade Pfizer, you’ll want to draw support and resistance lines on your chart. We know that the stock is likely to move in both directions, but unlikely to break either support or resistance. With that said, follow the stock up to resistance. At this point, purchase put options to make profit as you follow the stock back to support. Then, purchase call options to earn a profit as you follow it back up to resistance. Continue doing so until you can’t anymore because the trends aren’t likely to change; making this a very profitable venture.
What Do You Think?
Where do you think Pfizer is headed and why? Let us know in the comments below!