If you want to do well with biotech stocks, trade the anticipation of news.
Typically, you’d want to just jump into an anticipation trade early and jump out before the actual catalyst to avoid a potential sell-the-news reaction. Sometimes, the potential reward outweighs the risk.
Better, we can trade biotech anticipation with nearing trial results, PDUFA (Prescription Drug User Fee Act) dates, U.S. FDA advisory panel dates, and FDA decision dates. Granted, the strategy isn’t perfect, but it can help get you into potentially explosive opportunities early.
Here are three biotech stocks you may want to keep an eye on.
This post originally appeared at InvestorPlace.