Vertex at this time is a cash machine and seam undervalued according to DCF model. but everything depend on future treatment development so there is ah high value of volatility and risk related to this company.
Buy put spreads for April on this name. I think 180/165 put debit 4/19 would do well. XBI is under a lot of pressure, this company has nothing fresh right now, massive head and shoulders.
Get it back in that safe channel
The PEAD projected a neutral outlook following a negative under reaction after its earnings release placing the stock in drift D
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Fundamental & Chart
Not for investment advice, personal notes only
Chart:
identified key area of support, concerning current H&S pattern, potential downside to next support indicate 17% drop. CMF shows weakness, spending a lot of times in the negatives.
So far trend line remains intact, neckline of H&S shows no particular bearish...
Vertex is now at levels close to those of Dec'19. Meanwhile, revenues increased +60% QoQ for Q3 2020 and EPS increased + 20% (also QoQ for Q3 2020). Operational cashflows have improved as well. If expected annual earnings are confirmed, Vertex confirms its upside potential and has also a positive outlook ahead as a result of the current environment.
VRTX gets getting beat down by earnings but if this support lines hold true this was reverse and has a huge gap to fill.
Keep in mind this in a Daily time frame and this will not happen over night (if it reverses).
PS> Cathy Wood continues to buy VRTX so something could be coming.
Do your own DD, this is not financial advice, only my idea.
