For companies in the Biotech or Pharmaceutical groups, big price movements can happen at any time. Knowing when these times are likely to occur can be rewarding for us, or save us from unforgiving losses.
These companies will typically be working on new drugs or procedures that can have a big impact on the bottom line of the company. Companies may go through different phases or trials for these potential new drugs or procedures, with each trial completion potentially causing a big move. Eventually, FDA approval is sought in order for the company to be able to market the new drug or procedure. There may be some advisory panels held along the way which can cause some volatility as well.
Normally, when implied volatility is high on one of these companies, it is an indication of some pending decision or trial results. To find important dates relating to trials or decisions, you can do a Google search. Today, a Google search was run using 2014 FDA approval calendar as the search words. One site that came up was http://www.rttnews.com/corpinfo/fdacalendar.aspx . Use sites like this as a starting point to be aware of what companies are working on what drugs.
A point to remember is that information can change quickly. It is always good to check back on news for any company that you are tracking on a regular basis. http://finviz.com/ is a good site to use to get up to date news information on a company.
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