In recent weeks, shares of Amicus Therapeutics (FOLD) plunged from $15 to $6 on news the FDA is asked for more information on its treatment for Fabry disease, an inherited disorder stemming from a buildup of a fat in the body called globotriaosylceramide.
It means FOLD can’t file for approval this year, as hoped.
While it’s bad news for the near-term, the sell off presents us with a great buy opportunity in a hot biotech trade with recent insider buying. Major shareholders at Perspective Advisors recently bought 750,000 shares on October 6 for $5.032 million.
There are two ways to trade the stock.
One, buy the underlying stock up to $8.50… And or two, buy to open the FOLD April 2016 8 calls at market.
Plan to hold for the long haul.
Hold all other open positions. While we have positions in the red, we just got finished closing 15 winning positions between June 22 and October 9.
Stay tuned for new trade alerts…
Until then, take good care.
Ian L. Cooper
Forgotten Profits