CRISPR: The Gene Editing Shark with Hidden Profits (and How to Catch Them)

 

Calling all risk-aware Sharks! Are you looking to snag some serious value in the biotech sector without getting chomped by volatility? Then set your sights on CRISPR!

CRISPR (CRSPR), the revolutionary gene-editing company, has been making waves in the scientific community. But for us at Sharkwater Trading, the waves we're interested in are the ones in the stock market – and right now, CRISPR is creating some interesting currents.

Why CRISPR is a Value Shark's Dream

CRISPR's stock price has seen its share of ups and downs. However, the company's potential in the gene-editing field is undeniable. This technology has the power to revolutionize medicine, agriculture, and countless other industries. As this potential unfolds, CRISPR's stock price is likely to follow suit.

The Beauty of Low-Cost Entry

The current price point of CRISPR presents a fantastic opportunity for value investors. By entering the game now, you're getting in on the ground floor of a potentially groundbreaking company at a relatively low cost.

But here at Sharkwater, we don't just buy and hold – we actively manage our portfolios to maximize profits. That's where our two favorite options strategies come into play: cash-secured puts and covered calls.

Double Down on Value with Cash-Secured Puts

Cash-secured puts allow you to collect premium income while essentially getting paid to wait for the stock price to rise. Here's the plan:

• Sell Cash-Secured Puts: Find a strike price you believe is below CRISPR's intrinsic value. Sell put options at that strike price while simultaneously tying up a specific amount of cash (equal to the number of shares you're willing to buy at that price).
• Collect Premium: You'll immediately receive a premium for selling the put options. This is essentially pure profit if the stock price stays above your strike price by expiration.
• Assignment Advantage: If the stock price falls below your strike price and you get assigned the shares, you've bought them at a discount you were comfortable with beforehand.

Covered Calls: Turn Volatility into Income

Once you own those CRISPR shares (through assignment or by buying them outright), covered calls become your secret weapon. Remember, CRISPR is likely to experience some volatility as it continues to develop. Here's how to use that volatility to your advantage:

• Sell Covered Calls: Sell call options with a strike price higher than your cost basis (the price you paid for the shares). This allows you to collect additional premium income.
• Double-Profit Potential: If the stock price rises but stays below your strike price by expiration, you keep both the premium and your shares.
• Profit Even if Assigned: If the price surges past your strike price and your shares get called away, you've still profited from the initial purchase price plus the premium income.

Remember, Sharks:

This approach isn't a get-rich-quick scheme. It's about strategically managing risk and generating consistent income while you wait for CRISPR's long-term potential to unfold. By combining low-cost entry, cash-secured puts, and covered calls, you can turn CRISPR's volatility into your own personal feeding frenzy.

Do you already have a position in CRISPR, or are you waiting for the right opportunity to strike? Share your thoughts and strategies in the comments below!

Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.