An Option Play on a Biotech Merger
Today is the day of biotech. Chances are, if you run any market scanners for big volume or big daily gainers, then you are seeing biotech names near the top of your list. A little hint: I've always found it more profitable if I limit to the search to stocks over $5, but everyone has his preferences. Biotech is a space I like to tinker with, although it is not my main focus. However, this morning it has become my main focus, at least temporarily, with some of these big movers.
Inhibitex (INHX) is the biggest mover on the news that it is being purchased by Bristol-Myers Squibb (BMY) for $26 per share. For a stock which went into the weekend trading just under $10, this was a huge premium and a nice way to come into the start of the week for INHX longs. Ironically enough, cautious comments from one analyst last week sent the stock spiraling lower, with INHX going from $11 to $8.50 in just two days. Perhaps the names should be changed to protect the innocent there....559 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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