The healthcare sector has been rallying since the beginning of last month, with the S&P healthcare sector up over 5% in that time frame.
And some catalysts working for the healthcare and biotech stocks include America's embrace of weight loss drugs, as well as artificial intelligence tools that are transforming the industry.
Along those lines we are seeing companies today's trading session up 13%.
On the year and we also know that other companies are also close to 50% and yet intuitive surgical procedures which are advancing robotic surgery is down about 25%.
So to shed some light on this and some of those names, we have Bob Lang, he's founder and chief options analyst of explosive options.
Bob, thank you so much for joining us.
Great to be with you, Johnny.
Thank you for having me this morning.
So let's go ahead and start off with the biggest name out of the three stocks that we did talk about the pharma giant Eli Lilly.
So what's the biggest breakdown of where the stock stands right now?
Boy, Lily's been in a really strong uptrend, Johnny, for the past, uh, couple of months since it bottomed at about $850 at the end of, end of April.
The stock has been on a tear and it's been up close to 50% in about, uh, two months' time.
It's, uh, it's been an incredible run.
Stock is, uh, trading at above, uh, reminder $1200 a share.
It's gonna, it's, it's joined the 1 trillion-dollar club.
Uh, $1 trillion dollar market cap club recently.
And, um, I, I think with earnings coming out later on this month, Johnny, I don't think there's gonna be anything, any, um, any reason to be disappointed with uh Eli Lilly.
I know the stock is down a little bit this morning on Monday, uh, July 6th, but I think that, uh, this pullback is a great opportunity to get on board and add some shares.
I think people have missed the boat here over the past couple of months, especially last week, um, when it had a huge move up, um, on really heavy volume.
Um, after announcing that, um, uh, they're going to be able to sell their GLP ones to, uh, Medicare patients and for reimbursement too.
So, that's another, another large, um, uh, segment of the population that where they're gonna be able to, uh, make some big money.
So let's talk about intuitive Surgical.
It is down double digits here today.
This is uh at a time when AI tools are on track to transform medicine.
So, what is your outlook on the company?
Well, I, you know, I, I think, I think the outlook is real strong, real positive over here.
Um, you know, we're seeing some good catalysts here.
We're seeing some good money flows into the company as well too, um, and into the sector.
So, um, I think as long, as long as that continues, Johnny, that, uh, things are gonna be just fine and it's gonna be a by the dip situation.
So regarding Travia Therapeutics, it's likely the least known company amongst uh the ones that we have discussed.
So take us through your view on this biotech.
Boy, this, uh, this is an interesting company.
I've been, uh, uh, really watching this company for a long time.
They're involved in, uh, delivering life-changing therapies for people with rare kidney, uh, liver, and metabolic diseases, Johnny.
And I, I, the stock made a huge jump on some news in early April and continued to take off, making higher highs and higher lows along the way.
Um, it's, it pulled back to the couple of, couple of times, 3 or 4 times to the 20-day moving average where it had an opportunity to, uh, to break down, but it didn't.
Buyers picked up the stock at that point.
So, anytime it comes down to that 20-day moving average, which is right near, right now, it's, it's kind of entering a little bit of a sideways consolidation right now, which is normally very healthy for a stock.
After it's had a big uptrend, had a huge uptrend move in June, went from about, um, about the 44 level up to 60 bucks.
That was a very strong move in Trevere.
Um, and also, you know, I, I'm, I'm, I, it's always been the, um, uh, talk of Trevere as being a, uh, potential buyout target or buyout candidate because It's got some valuable drugs in the pipeline here.
Um, I'm not saying that that's going to happen.
There hasn't been any rumors, um, uh, about that happening with any strong rumors, that is.
But certainly, um, it's always on the radar screen, uh, for some of these big pharmaceutical companies, um, looking for, uh, a, a better, a better pipeline for drugs that are going to get approved by the FDA.
So when we look at the broader markets, what interesting options regarding the activity do you see as it relates to the S&P, the upcoming earnings season, or SpaceX?
Well, as far as the, the overall market is concerned, Johnny, we've seen a lot of good options flow inputs and calls over the past month, month and a half.
I think, um, a lot of put buying coming in, hedging portfolios, worrying about Uh, potential, um, unrest in the Middle East.
And that was, you know, prior to the, uh, the agreement that was made, uh, last month in, in, in June.
But I also see some, uh, some good call buying going on, and I do see some optimism coming up.
Uh, there's been some pretty brisk action in S&P 500 options for August and September on the 8000 strike and S&P 500, which, you know, isn't really far, uh, far from where we're at right now.
It's about, um, probably close to what, 4%, 3, 4% to get up there to 8000.
Old all-time highs almost exactly at 7600.
Um, which is just really a stone's throw away as well too.
So, seeing some good optimism, um, from option buyers over here.
And as far as SpaceX is concerned, you know, this is a stock that's going to get entered tomorrow into the NASDAQ 100.
So, there's gonna be, um, I'm sure there's been a lot of buying already that's been going on for SpaceX, uh, for by managers who automatically have to hold that stock, they've been buying that stock.
Um, I think what's gonna be interesting, Johnny, is when earnings come out for SpaceX, people really don't know what they're going to, uh, what they're going to deliver and how the market is gonna be impacted by those earnings.
But I, I do think that, uh, it's an interesting company.
I've owned the stock since the IPO, um, uh, and I'm, I'm, I'm intrigued by, by what, uh, By what they're doing and the uh diversification that they have there.
And of course, there's always, uh, this rumor out there that says that uh SpaceX may be interested in buying Tesla somewhere down the road.
So, um, there's a put option under Tesla if you don't own the shares, that's probably a good spot to be, uh, any pullback is probably a good spot to add the, uh, shares of Tesla.
Oswald, thank you so much, Bob, for your insight.
Definitely interesting to see how the market is transforming, especially towards the later half of the year.
Thanks so much, Bob.
Great to be with you, Johnny.
Thank you for having me.
