Ready to Roll With ONYX

I still feel comfortable with biotechs. We've already seen a great breakout by Sarepta Therapeutics (SRPT), but this sector is full of big movers in both directions. Another one that looks ready to roll higher is ONYX Pharmaceuticals (ONXX). I know that Bob Lang is already in this name and has benefited from the recent run higher, even if it was a bit bumpy. For me, ONXX on a close above $90 sets up a trigger for a move to $97. I actually suspect it would see $100, but not because of a measured target or anything, but simply from the psychological push to see the round number many traders love.

ONYX (ONXX) Source: View Chart » View in New Window »

Stochastics support the price and I expect the relative strength index to jump in here as well. The options are playable even with the wider spreads and low open interest. If one is willing to go a bit into the money with something like the April or May $85 calls, the time premium isn't unreasonable. When I have the choice, I prefer a call option to straight-up shares when trading a biotech. There is just so much overnight risk that comes with these names; however, I will get long this name if it remains over $90 with just a few minutes left in today's trading session....133 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.