To make it clear, I personally don’t have the risk tolerance or financial resources to endure this strategy. While I’m not acting as an investment advisor, my suggestion would be for individuals to steer clear of these strategies.

These stocks have well-defined catalysts, commonly referred to as trials. You might be familiar with the phases — Phase 1, Phase 2, Phase 3, and FDA Approval — in the drug development cycle, especially after witnessing the rapid development of the Covid-19 vaccine. The American Council on Science and Health provides a chart illustrating the approximate success rates of drugs across different clinical trial phases, categorized by the field of medicine for which the drug is being developed.

A quick look at the chart likely reveals that drugs related to ophthalmology have an almost 90% likelihood of passing Phase 1, while oncology-related drugs have a mere 3.4% chance of approval.

The outcomes of these approvals or rejections can lead to substantial fluctuations in stock prices. You can track these events chronologically through the mentioned website: BioPharmCatalyst.com.

Ah, it’s a paradise for those interested in speculative market activities.

A brief review of the FDA calendar on the website reveals numerous publicly traded companies, specifying the disease the drug targets, the trial phase, and the catalyst date.

The approach to this strategy is uncomplicated. It’s remarkably straightforward.

The Strategy: Short biotech after big booms.