ProShares announced the launch today of two new leveraged (2X) biotech exchange-traded funds (ETFs), including the Ultra NASDAQ Biotech (BIB) that will seek to provide 200% of the return on the NASDAQ Biotechnology Index and the UltraShort NASDAQ Biotech (BIS) that will seek to provide -200% of the return of the same index. Other popular ETFs for the biotech space with over $500 million in net assets include iShares NASDAQ Biotech (IBB), SPDR S&P Biotech (XBI), Biotech HOLDRs (BBH).
<font> Active investors and traders in the bio-pharmaceutical space are well aware of the major impact on stock prices of clinical trial results and FDA decisions, which is not currently available and would be difficult to commercialize in the form of a structured investment product such as an ETF. </font>
<font> By tracking information on upcoming binary events, it is possible for individual retail investors and institutional investors / fund managers to develop a risk-mitigated strategy such as buying companies with pending FDA decisions or clinical trial results well ahead of their expected catalyst dates (e.g. 3-6 months) and selling all or part of the positions as the date nears with expected increase in both trading volume and stock price as more momentum / day traders become active in these types of companies. </font>
<font> Binary event trading and investing offers the possibility for a variety of stock and option strategies, with the flexibility to construct complex / hedged trades involving options, momentum / day trading strategies as the catalyst date approaches, and longer-term, risk-mitigated strategies such as the one outlined above. Regardless of the trading / investing strategy, the tracking information is crucial to any strategy and is a key component to the index updates service described below, which is information-based and designed for self-directed investors and traders to accommodate a wide variety of strategies. </font>
<font> www.mikehavRx.com </font> <font> is your prescription for stock index investing updates focused on the healthcare sector, medical innovation, and pending binary events such as FDA decisions and clinical trials. The actively managed HavRx Regulatory Catalyst Index updates report is currently tracking 388 entries, 250 companies, and over 125 stocks under $5 per share. Promo codes (50% discount) are also available for college students, investment clubs, and subscribers to my previous FDA Calendar or similar services. </font>
<font> Disclosure: No positions </font>
$91.9 (04/09/10)
