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The protection racket

Nature Biotechnology volume 24, page 1081 (2006)Cite this article

Biotech stocks can be white-knuckle volatile, but there is a way you can profit from, or insure against, such rapid and dramatic price changes. Through put and call options, you may not only make more profits, but also buy and sell 'protection' for your investments (with no need for 'knuckle' sandwiches from your neighborhood mobster). Despite their potential benefits, options are definitely not for beginners, but everyone—especially biotech investors—should know about these valuable tools.

Calls and puts as profit makers

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  1. Tom Jacobs is co-founder of Complete Growth Investor, http://www.completegrowth.com, a stock service for individual investors. Tom was neither long nor short either shares or options of the companies mentioned here at the time of writing. Options can involve significant risk and should be studied carefully before investing.

    • Tom Jacobs
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  1. Tom Jacobs
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Jacobs, T. The protection racket. Nat Biotechnol 24, 1081 (2006). https://doi.org/10.1038/nbt0906-1081

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