Strategic trade
Trade view / 19 June 2015 at 10:42 GMT

#SaxoStrats: Playing defence with long ATM Biotech ETF puts

Global Macro Strategist / Saxo Bank Group - Singapore Hub
Instrument: BBZA:xetr
Price target:
Market price:


Biotech has been the engine and market leader of the US equity rally with a circa 25% plus year-to-date share rise and an even better 50% plus over the last 12 months.

There could be a correction on the way here though, with markets way too complacent on Greece as well as a possible US Federal Reserve hike decision in September, regardless of those dovish noises this week.

We're specifically looking at the Long Puts 375 ATM Sep 18 here.

Management and risk description

No Fed hike in September or a delay along with a solution to Greece or at least another delayed decision.


Entry: 4.6%.

Stop: Premium.

Target: 2-3 x premium.

Time horizon: Sep 18, 2015 expiry

12-month chart


It's been a stellar 12 months for Biotech, but is a correction due? Source: Saxo Bank

Five-year chart


Biotech share's have enjoyed a fantastic run since mid-2011. Source: Saxo Bank

— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more



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