Dear Reader, Novavax said its development and supply agreement with the South Korean firm will help
An Earnings Beat Sets Up a Trading Opportunity
[Options Profits Daily]
This Stock Is a Volatile COVID Trade
Novavax said its development and supply agreement with the South Korean firm will help it supply its vaccine, NVX-CoV2373, to global markets, including South Korea. SK is set to start production this month.
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This is important because a J.P. Morgan analyst argued the company has a probable best-in-class immunogenicity profile, despite recently encouraging news from Pfizer and BioNTech. This is good news, but the stock is volatile.
It fell more than 16% according to Barron’s “amid apparent progress for Russia’s vaccine candidate and a U.S. government supply deal with Moderna, part of the Trump administration’s Operation Warp Speed plan to fast-track promising Covid-19 vaccines.”
[This makes the stock exciting]( and while excitement is nice, traders are looking for profits and the question they must answer is whether this company can deliver trading gains. Of course, gains are not enough. Traders must also consider risk because there is a potential for loss on any trade.
As we explain [in our latest article,]( there are strategies that can be used to manage risks while leaving room for significant upside potential. In this case, the strategy could deliver a gain of 181% on risk of $131. These values are known when the trade is entered and the risk, in dollar terms is precisely determined when the trade is opened.
We share the news that could be the catalyst for this stock and then identify a specific trading opportunity that you will find in our latest free educational article that is [available right here..](
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[Earnings Season Sets Up a Potential Gain of 349%]( `
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