Profit While Wall Street Runs Scared
Editor’s note: This week, The Rude welcomes special guest Mike Burnick.
Over the last few days, Mike has been giving you a behind-the-scenes look at how Amplified Income moves can lead to quick market gains. Today, Mike provides you with an Amplified trade you can act on right now…
You’ve seen firsthand the power of Amplified Income.
I’ve shown you examples of how my readers were able to turn around incredible gains in a short amount of time.
Gains of 62%, 54%, 80% and even 94%!
Now it’s your turn…
Wall Street is Scared Stiff—Now’s Time to Buy
I’m not a doctor and I can’t begin to explain the chemical properties of a pharmaceutical drug to you.
But I do understand the economics of the drug industry. More importantly, the economics of patent law as it pertains to generic drugs.
Patent law has dramatically changed the biotech industry… and is turning some drug companies into perpetual-money machines.
A successful drug can generate billions of dollars of profits for its creator, but the patent protection on drugs is only good for 20 years (can be extended under some circumstances).
After that, low-cost generic competition can steal huge chunks of business.
For example, when Lipitor, the anti-cholesterol heart medicine and biggest-selling drug of all time, lost its patent protection, Pfizer saw its sales fall by a painful 19% in the very next quarter.
After Prozac went off patent, sales for Eli Lilly dropped by 9% in just 90 days.
Naturally, the Wall Street crowd is scared stiff of patent expirations and generic competition. Drug companies often see their stock prices plunge as patent expiration approaches.
Those fears are completely justified for traditional chemical medicines like Lipitor and Prozac. But it’s misplaced for the new generation of biomedical drugs.
Biomedical drugs are manufactured in a living system — microorganism, plant or animal cells — and are large, complex mixtures of molecules. Many biomedical drugs are produced using DNA technology.
Chemical drugs have well-defined chemical structures and can be analyzed to determine all their various components and then replicated in generic form.
Biomedical drugs, by contrast, are difficult if not impossible to replicate.
Enter AbbVie (NYSE: ABBV).
AbbVie uses biomedical drugs to avoid the often-seen downfall with patent expiration. With the #1 bestselling drug in the world, Humira—this biotech giant keeps growing — and keeps handing investors a handsome profit in return.
Humira is the crown jewel of AbbVie’s drug lineup—in 2017 it pulled in $18 billion of sales.
That’s right– $18 Billion in a single year.
$18 billion is especially impressive when you consider that Humira lost its patent protection in 2016.
Moreover, with no competition in sight, AbbVie management expects Humira sales to grow to $21 billion a year by 2020.
Today, I am going to give you two ways to play it.
Standard Trade: Buy AbbVie (NYSE: ABBV) at market.
Amplified Trade: Buy the AbbVie (NYSE: ABBV) Jan 18, 2019 $92.50 call up to $5.00 per contract. Symbol: ABBV190118C00092500.
Please note: We will not be tracking this trade in these pages. If you choose to act, please plan your exit accordingly.
Note on risk: Option plays can be volatile, and all involve plenty of risk. Never, ever invest money that you can’t afford to lose in an option recommendation.
If you’re not comfortable with options, it’s OK to stick with shares of the stock itself. But keep in mind that the stock will have a more muted risk/reward profile. The big upside potential is in the options.
Want more Amplified trades? Simply click here.
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Here’s to growing your wealth,