XBI

TheInkDon1

My best advice: don't think of options as something you "do" that you need to find high-IV underlyings for. Use them as the tools they are. Express your long (or short) thesis with simple Calls (or Puts) that you buy. LEAPS Calls at 80-delta or higher are *stock substitutes*. Then sell 'covered' Calls against them if you want. The Poor Man's Covered Call. Another thing: **ETFs are safer than stocks.** And with the leverage of LEAPS Calls, you can get some pretty spiffy returns. I'm in SLV, XBI, XPH, & DXJ right now. Good luck.

TheInkDon1

I'm surprised no one asked who your broker is. On Schwab I get filled on LEAPS Call buys better than Midpoint most of the time. A month ago someone commented that liquidity on XBI was low and spreads were wide (both true), but I answered that I didn't think that mattered. Then when the market was open the next day I proved it, with screenshots. You can take a look [here ](https://www.reddit.com/r/options/comments/1og21ln/comment/nldrpl0/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)if you want. It's proof that it can be done, as least on ThinkorSwim with Schwab.

TheInkDon1

Thank you, that means a lot to me! So, I haven't been doing this in earnest for long, really just 2 or 3 months. But it does make sense, intuitively, doesn't it? And I don't keep good records to where I can say my accounts went up this much over that long. But I can give you my last 3 trades to give you an idea. **XBI** has been my darling for 7 weeks now. On **10/22** I bought Dec'26 90-Calls for **25.85**. Today they're worth **36.95** at Midpoint here AH. That's 43% over 7 weeks (1 day short). Can we call that 6% per week and extrapolate? **XPH**: this one I broke my LEAPS rule because it doesn't have expirations out that far, but I liked its chart, and it was better than the runner-up I'd picked, which did have LEAPS options. On **11/18** I bought 17Apr26 39-Calls for 13.65. Today they're worth 17.90. 31% over 3 weeks exactly. 10% per week? **XLV**: this one I cut yesterday b/c it had been going down for 2 weeks. **11/18** bought the Jan'2**8** 120-Calls for **39.97**. (I was experimenting with max time on these.) I can't tell you what those would've sold for yesterday, because I had rolled them in to Jan'2fter a 1.4% XLV share drop from yesterday) those Calls are **36.50**. So a loss of 9% over 3 weeks, -3% per week. So like that: some winners, some losers, and so far I've kept the losers small by monitoring the trend of the underlying. Do we get to add 6 + 10 - 3% per week and 13, then divide by 3 to get 4% per week? I don't know, maybe there's a better way to do that.

TheInkDon1

I never mind, great questions. The best way to buy LEAPS Calls, they say, is to wait for a dip in the underlying. I don't, but you probably should. I should really try to map it out, but my thinking is that a drop causes IV to go UP across all the option chains, and higher IV leads to higher extrinsic, doesn't it? So is that really the time to buy? But assuming the IV *doesn't* change, then you might be buying a strike or 2 deeper ITM, so that's got to help when the underlying rebounds. And then if the price drop actually helps *lower* the extrinsic value of the the options, that's even better. Trouble is, I don't know how to do a "with a price drop" vs. "without a price drop" comparison. If you could figure that out I'd appreciate it! If there's a sharp **drop** in the underlying I wouldn't be rolling the long Calls, because their Delta will have **dropped**. So there I just wait for the underlying to recover, or get out if it doesn't. But when I **do** roll to "reset Delta" to 85 or 90 or whatever, it's when the Call has gone **deeper ITM** and its Delta has *increased*. And I thought you were going to go somewhere else when I saw the first sentence of your question: the time value we're buying. And yes, it can be kind of high on some tickers (especially if they're stocks) but on, say, XBI, it's just 5.61 against a cost of 37.45 for the 90-delta 374DTE Call. 1) that's 'only' 15%, and 2) tells me I only need XBI to go up 5.61 in the next year to cover it. XBI has gone up $13 in the past *month*, so I'm not too worried about that. And then if that *had* been your question, I was going to say that one function of selling CCs is to cover that per-day theta loss. And right now, at 31DTE, the Call at 15-delta more than does that. So there ya go, more than you asked about! Take care

creemeeseason

XBI has been on a tear due to potentially lower rates and the thesis that AI will massively speed up drug discovery.

TheInkDon1

Thanks, but that was way too much leverage. And is what 1) pushed me out to 85 & 90-delta, and 2) made me only buy Calls with my money at least 1 year out. Now profits, those I'll buy Calls 100-120DTE, but still at least 85-delta. I'm hoping gold resumes also, but in the meantime silver is doing yeoman's duty. 1/3rd of all my money (and my sister's money) is now in SLV (along with XBI & XPH). PMCCs, with profits to be plowed into 100-day Calls. You're right, Biotechs can have huge payoffs, and I hope you hit some of those 10-baggers or better overnight. But I just can't stomach the drops. So I feel like XBI gives me the best of both worlds. And with it doing 10% per month over 3 months right now, I can leverage that with even 90-delta LEAPS Calls by 2.9x. So 29% per month, 350% apy using rough math. And *oh man,* your last paragraph! I'm worried about every single one of those things too. Plus some others: gun violence, the sense of entitlement, corporate and personal greed, and this one: I think we're going to look back at COVID and see that something fundamentally broke in our society. No one wants to work anymore, the rush to gig jobs and full-time telework, and what all that means not only for businesses, but for our mental health, because now we're all in our little self-contained bubbles: home to car to Target, where I maybe feel like I need to carry a gun to protect myself from all the perceived crazies out there, then back home if I survived. All of which are part of why we're retiring and moving to Spain next year. I should send you the email I halfway plan to send to my federal government colleagues on my last day. Take care, Mike

Minute_Tune_6461

I think ARKG is pretty good. A better biotech would be XBI. I’m invested in both. Give it time.

TheInkDon1

Hi, it's right there near the top: >I find \[momentum\] on **ETFs** [like this](https://imgur.com/a/etf-screening-on-barchart-G2Q5UWp). >I screen by **3-month** performance, but look at *6-month* charts. I'm not looking for the most UP, but the *smooooothest.* So I do ETFs only, not stocks. And I screen for them on Barchart as the screen-capture video (the blue link) shows. You might need to have Barchart Plus for their "flipcharts" feature, but it's so worth it to me. Or just screen ETFs with options there or anywhere else, then chart them somewhere. I find [StockAnalysis.com](http://StockAnalysis.com) to be quick and easy to use. It makes quick, pretty charts like this one: [My current 3 ETFs](https://imgur.com/a/BDuibJB) Silver is choppier than I like, but the return made me buy it. XBI is my current benchmark. I've been in it and XPH for 6-7 weeks now. So looking at that 3-month view, do you see the relative smoothness of XBI & XPH? That's what I look for, over the choppiness of SLV. But today I had to cut XLV (have a look and you'll see why), and I couldn't find a replacement I liked as well as even XPH. So I scaled fully into SLV, which I'd been dipping my too into late last week. Does that help?

sam99871

10/20 is a date that shall live in infamy. That’s an absurd 3 month return in your screenshot. I did well too but not THAT well! I’m hoping gld resumes its epic run but if interest rates really rise for newly issued US govt debt, I think the game will be over. I just looked and I’m surprised at how decent the premium is on 32 DTE, .16 delta Gld cc’s, and I guess if the underlying ever reaches your cc strike price you’ll have made ridiculous profits anyway. I will think about doing some cc’s, especially now that gld has been moving sideways for a little while. But I can’t help thinking—what if it zooms to 500 overnight? My tiny amount invested in stocks is actually mostly in small biotechs because they can have huge payoffs and they may survive a big downturn better than other companies (there will always be a market for a cure for cancer). But ETFs are just bunches of stocks of course, and if the economy crashes, equity ETFs will crash with it (except hopefully not XBI). I’m concerned about more than just an ordinary correction, I’m concerned about fundamental changes in the role of the US in the world, both economically and politically. As well as potential risks for US government debt, falling vaccination rates and massive cuts to scientific research funding. Maybe everything will be fine, the US has weathered massive chamges before. But I don’t like what I’m seeing, and I don’t think I’m going to like what I haven’t seen yet.

TheInkDon1

You're welcome, and thanks for all the ideas you packed into this reply. I added some more content to my OP about managing the long Calls, if you want to have a look. I get it with the CCs, and that's a debate I've been having with myself for the past couple months. I do see that they cap gains, but I also like that they buffer dips to an extent. So I see them as helping to even out the peaks and valleys a little. But I have gotten stricter with keeping them below 15-delta (a 2-SD move is 16-delta, right?), and they're behaving a little better. GLD, ohmygosh! I got in it big-time in March, with 90-day and longer Calls at 80-delta (I wasn't doing LEAPS yet), and my God, the leverage! Can I share [a screenshot](https://imgur.com/a/schwab-account-statement-11oct25-BLwTnhq) with you? Don't look at that if I can't! That's the best I've ever done in 3 months, and it was mostly due to GLD. I gave back about 25% of that when gold decided to get off the escalator on 10/20, but that's alright, it was exhilarating. Equities: if you mean stocks, I've given up on them. Only ETFs for me from now on. Because with the leverage of LEAPS Calls, you can make a good-trending ETF give stock-like returns without the single-issue risk. But rather than sit on cash until the correction that's bound to come comes, I wish you'd consider finding momentum ETFs. XBI has been good to me for almost 7 weeks now, and I can still recommend it.

TheInkDon1

Oh yeah? How did your XBI LEAPS Call work out? Are you still holding it? What is/was the gain? Did your short Call(s) get run over? Mine do, even at 15-delta. But it's a good problem to have, because it means the LEAPS Calls are appreciating more. Take a look at **SLV**: it's choppier than I like, but man, the recent returns. I started scaling into it last week, to where now it's 1/3 of all my accounts, along with XBI and **XPH**. Take care.

redsdf17

Thanks for sharing this. I went through on a PMCC on XBI from one of your previous comments and looking at other etf's to take similar positions.

TheInkDon1

B/A spreads are generally wide, but it typically doesn't matter, because the Market Maker will give you a fill at, or even slightly better than, Midpoint. I made a post on that very thing a few weeks ago on 3 different SPDR ETFs. Oh, and since you mentioned taking profits, here's what I do all the time, and must've done 15 of them today in XBI and XPH: Buy a Call >1y out at 90-delta. As the underlying goes up, that Call goes deeper ITM, *and it's Delta goes up.* Just as soon as there's a strike beneath that one (higher strike price) that's at 90-delta, I roll UP to it. Because my Call was probably at 91 or 92-delta. So it had some profit built up in it, and rolling back to 90 takes that out. It also resets the Call to 90-delta, where I like to keep them. And so this ties back to your B/A spreads question: Those rolls are almost always for 75-85 cents. With strikes just 1 apart, the most a roll like that can bring is $1, but the 2 strikes will have different extrinsic values, accounting for why you never get the full dollar. And not a LEAPS Call, but today I rolled a 130DTE IAU Call up 1 strike. Here are [the B/As in that area](https://imgur.com/a/zIcI1WA) right now. If you work out those Midpoints, you find that you'd be selling the 68C for 12.70 and buying the 69 for 11.35. That would be for a Credit of 1.35. And ToS set the order up as me getting 1.30 Credit at the time. But there was no way that was going through, because it was >$1, and to get paid 1.30 to improve by 1 strike would be free money. But it was based on the wide/wonky B/A spreads between the 2 options;. So I changed the order to a 0.95 Credit, thinking I'd walk it down, but lo and behold, [it filled](https://imgur.com/a/i3vtzG5). So don't worry about wide spreads, you'll generally get filled at Midpoint.

TheInkDon1

You're welcome! As a data point, I bought **XBI** (the blue line) on 10/22, 6.5 weeks ago. The LEAPS Call I bought was the Dec'26 91-strike for **25.19**. That guy is worth **38.17** today. A gain of (38.17 / 25.19) = **51%** I'd apy that from 6.5 weeks, but it gets stupid. I'm also in **XLV** (which I don't recommend right now), and **XPH**, which hasn't done quite as well as **XBI**, but is solid. And the beauty of buying LEAPS Calls is that you can dial in the amount of leverage you want. I want really-good-but-sorta-safe leverage, so I buy at just over 1y and at 90-delta. Let me show you how the leverage calc works: Tomorrow I might buy the 376DTE XBI Call at 90-delta, the 94-strike, for **35.13** at Midpoint tonight, Sunday. XBI shares were last at **123.41**. How many of those Calls could you buy for the same money as 100 shares? 123.41 / 35.13 = **3.5** I kind of call that the *gross* leverage. Because it does answer that question, but it doesn't yet tell us how much faster the Call's price rises as the share price rises. For that we need to factor in the Delta of 0.90, which just means that the Call appreciates 90% as much as the shares: 90 cents on a $1 rise. So we multiply that 3.5 by 0.9 and get **3.1x** *net* leverage. But you might not want that much leverage. ***Because leverage cuts both ways.*** So you might go as far out as **XBI** has options, 775DTE/2.1y, and buy not at 90-delta, but at the first *100-delta* Call you find, the 80-strike. *Do you think it will cost more? And why?* Try to answer before reading ahead. Because it's farther out in time, it has more "what-if" potential, so yes, it will cost more. And because it's deeper ITM, you're paying for more 'equity' in the ETF. Okay, so he sells for **50.00**. Rembember that the first one sold for just 35.13, so you can see that the denominator of our calc is larger, leading to a smaller output. But here we get to multiply by 1.00, not 0.9, so we don't get that Delta reduction. So: 1.00 x (123.41 / 50.00) = 2.47x leverage. 3.1 before, 2.5 now. If you want even less, then slide up in the Call chain to lower strikes. They go down to 50, which gives a leverage of 1.6. So you see, you can dial in anywhere from 1.6x to 3.1x leverage on XBI, to suit your needs. And if I didn't say it before: deep-ITM LEAPS Calls act as share substitutes, giving us that leverage. So don't think of them as "option things," but just shares on steroids.

TheInkDon1

When you sell CCs against LEAPS Calls, the denominator of the ROI calc is much smaller than it is if the denoinator was the share price. 3 or 4 or 5 times smaller. That's what actually makes it worthwhile to sell CCs against LEAPS Calls. So my favorite ETF right now is XBI, the S&P Biotech Sector. A 376DTE **90-delta** Call is selling for **37.00** at Midpoint here AH on Sunday. A 26DTE (4 weeks) **28-delta** Call is selling for **1.58** Midpoint. That's too high a Delta for an ETF that climbs like XBI does, but option prices and Deltas below that point are wonky here AH, and that's the last one I could rely on. But let's say a **14-delta** Call would sell for **half** that, so **0.79**. So then ROI is just premium from the CC over the cost of the long Call: 0.79 / 37.00 = 2.1% But that's over 4 weeks, and there are 13 4-weeks in a year, so 27% apy. And that's nothing to sneeze at. I'd give you ALL of my money to manage if you could get me 27% per year. But it's at a low enough Delta (14-ish), that it should only very rarely be challenged. Plus I actually sell Calls at 2 weeks (which I don't recommend to beginners), which will give a higher number (not double), but the options are too thin for me to reliably say.

TheInkDon1

Well, first of all, I only do **ETFs** now. And I only buy LEAPS Calls on them, with these parameters: **>1yr** (there are longer strikes, but the one closest to 1yr) **90-delta** or higher. I use Barchart to find ETFs with **3-month** *momentum*. Here's a [video screenshot](https://imgur.com/a/etf-screening-on-barchart-G2Q5UWp) of how I do that. I then look at their **6-month charts,** looking for *smoooooth*. Then I buy a LEAPS Call on them. (And sell a <20-delta 'covered' Call against each one, but you don't have to.) I just typed something up for a friend in email, so I'll use it here for a specific example. He likes leveraged ETFs, and I was trying to make the case for non-leveraged ones. But in the picture I'm about to link, let the orange line represent most any *stock*: [https://imgur.com/a/ND6l8G6](https://imgur.com/a/ND6l8G6) Did you look at it? You have to look at it first for the rest of this to make sense. >That's 2 ETFs over 3 months, both getting to about 31, 32%.  But *which ride would you have rather been on?* And sure, with **shares** that you never sold (because "the market always comes back") you'd have been alright.  But how would you like to have bought a LEAPS Call at the orange line's peak? That's a 22% drop to the bottom in mid-November, and I suspect it would've put a hurtin' on a LEAPS Call at just about *any* Delta. >So the 2 ETFs are **USD** and **XBI**. When you look it up you'll see that XBI is Biotech. \[His USD is 3x Semis.\]  And as volatile as individual Biotech stocks are, who would've guessed their ETF would be smooth like an escalator? And that's because there are about 135 individual companies inside XBI.  So some can have good FDA trials, some can have bad, and some can even go bankrupt, but the ETF smooths all that out and lets us simply participate in the Biotech sector's trend.  That's why I love them:  for their averaging properties. >I've been in **XBI** since 10/22, 6.5 weeks ago. The first Call I bought was the Dec'26 91-strike for **25.19**. That guy is worth **38.17** today. A gain of (38.17 / 25.19) = **51%** I'd apy that from 6.5 weeks, but it gets stupid. Does that help?

Revfunky

In bull markets everyone gets a turn. That’s why understanding rotation and learning to adapt are so important. Remember how bad healthcare looked for so long? It felt like it underperformed forever. And with it Biotech stocks were left for dead. Now healthcare is one of the strongest groups in the market- and Biotech stocks are leading the way. Take a look at this three-month performance chart of U.S. indexes and sectors Equal-Weighted Biotech ETF (XBI) and the Market-Cap-Weighted Biotech ETF (IBB). If everyone gets a turn eventually energy will get its turn. Oil Refiners ETF (CRAK), which just finished October with its highest monthly close in history. Energy Sector ETF (XLE) - similar setup, but still stuck at the same levels it was back in the summer of 2008. I think it’s time will come. To survive in the market you have to adapt, or go extinct.

EventHorizonbyGA

$IWM moved 30% and $XBI moved 100%.

TheInkDon1

I would add to this: ETFs. LEAPS Call prices are generally reasonable, even on something like **SMH** (semiconductors, IV 38%) or **XBI** (biotech, IV 32%). At 380DTE and 90-delta you're getting 2.5:1 and 3.6:1 ratios respectively.

invisible_momager

They were all ITM when I bought them. One little sucker dropped 70% in one day and of course I was flying to Atlanta and didn’t see it happening. It’s got time but it’s not looking great. Luckily it was $30 total risk, so oh well. (When I say I’m learning with a little money, I mean a little money.) The others are in the money and really in the money, so that’s good. I want to get to a place where I can buy 100 of a major etf, but I’m learning along the way. I’ll get there. Or maybe I’ll get annoyed and just chuck what’s left a retirement account and let what will be will be. I’ll look into XBI, not sure I’ve heard of that one. I do like biotech stocks. Good luck out there. May the market be ever in your favor.

TheInkDon1

Your first EVER Reddit post?? Congratulations! And we're not *all* mean out here. Oh good, you've bought Calls 120 & 150DTE, plus a LEAPS Call, that's awesome. Were they well ITM? Please **never** buy OTM Calls. And you learned the same lesson I did about shorter-term Calls, that's why I now have the 100DTE rule. But just because you buy longer-term Calls doesn't mean you have to *hold* them that long. I buy 1-year, 90-delta LEAPS Calls many days of the week, but I'm not generally holding them longer than 2 or 3 months. The beauty of them is that they act as *share substitutes* when they're that deep ITM. And the longer time gives you "more time to be right," as well as deeper ITM giving you more buffer to dips in the stock. I can't say I'd be long **IREN** right now, but get an underlying that's going up and watch out! Because the leverage of long Calls (that 2.5x I talked about above) really spices things up. And if I may: please consider ETFs over individual stocks. They're just safer. Yes, a little more boring, but with the leverage of LEAPS Calls (or shorter ones) you don't need too much price action to give you great returns. The last 2 days haven't been good, but look at **XBI** on a 3-month chart. It's been very good to me for about 6 weeks now. Have fun!

New-Somewhere1023

2 things :) 1- thank you I will look into XBI 2- please note that GANX HASNT EVEN BEGAN TO SCRATCH THE SURFACE.. I am still buying as I strongly believe it will be BO in less than 60 days or will at least be $8

Dramatic-Morning-100

Yes, congratulations, you get to say "I told you so". :) It was just one of many possible trades I was contemplating, and only the vagarities of this unpredictable market determine which is rewarded. To your credit, because of this conversation I was moved to research the biotech sector as a whole, and decided to invest in XBI, which has since returned 12% and has a very reliable 6 mo. trendline for 100-150% annual increase. So, happy for you, and myself as well.

CommericialBlueCrab

Reminder that XBI is nearing COVID highs. Very low correlation with the rest of the market makes it a great hedge.

Soossaaaa

Buy XBI and thank me later. Buy UNH and thank me later. UNH will stay flat to shake out the ponzi leeches then moon hard

callmesrpt

The XBI is up 53% in 6 months, this is a Pfizer specific issue. At that size, big pharma is largely reliant on acquisitions and inlicencing assets (with a few notable exceptions where blockbuster drugs have been developed in house. Pfizer is without doubt the worst at this kind of activity. They have a seasoned history of overpaying and underdelivering on assets they purchase. Is it possible they replace revenue more efficiently than they have ever done in the past? Yes, but it’s a complete lottery ticket. There is serious urgency with upcoming eliquis and ibrance patent cliffs where they seem to be on the wrong end of a shotgun barrel…

TheInkDon1

You're welcome, and I'm glad you're trying it! I've been loving XBI since 10/22, and added XLV and XPH more recently because they screened in for 2 ETFs I was cutting. I AM very concentrated in that area though, aren't I? But I don't look for ETFs that I *think* might do well; I simply find the ones that *are* doing well. Have you seen [how I screen on Barchart](https://imgur.com/a/etf-screening-on-barchart-G2Q5UWp)? You might need to pay for Barchart Plus to be able to do some of the steps, but the Flipcharts feature is more than worth it to me. But however you screen, **look at charts**, and look for *smoooooth*. I'll pick an ETF that's doing 'just' 2% a month over one that's doing 10% if it's a smoother ride. Because I know I can leverage that to something like 6%/month, and that's enough for anybody. And I don't have to worry too much about buying in on the wrong day and it tanks a day or three after. Because that hurts when you're buying LEAPS Calls. I just screened again, 3-month performance, Has Options, Volume >700k, then looking at 6-month charts: **XBI** was #1. That thing is up 53% over 6 months. Buy the 90-delta Call at 388DTE and you're getting 3.1x leverage after adjusting for Delta. That's huge. Silver and its miners, plus the gold miners GDX & GDXJ were next, and they're making me think it might be time for me to get back into precious metals. **IBB** was next, but of course it's another biotech. Still, 40% over 6 months, and look how smooth. Then **GLD** and other gold ETFs. Gold had a great runup since late 2023, and I caught some of it this year, but gave some of it back too after the peak on 10/20. I'll probably get back in if/when gold clears 4,200. Take care, Mike

redsdf17

Thanks for the detailed info. Planning to open a LEAP on XBI and this was very helpful.

CommericialBlueCrab

XBI so hotttttt

Pin-Last

I was on here screaming like a cat on fire to buy healthcare and biotech all summer. I’ve had posts, explaining how buying XBI @ $65 & selling @ $90 for the last decade beats ALL the ETFs, get downvoted to dust and ratted to mods as “low effort shilling”, though it demonstrated how healthcare *always* closes extreme market divergence. I hope the next time I post or comment on the sector, someone hears it wo/ ratting me out to the mods. 

Terakahn

GLD, XLV, XBI. AI and commodities run for way longer than people think. But I wouldn't do any of these I'd just pick stocks

Formal-Archer6472

XBI is the way

SophonParticle

I just buy an ETF in that sector. For example XBI for biotech.

Sanctuary_Bio

Just because I have $ means I can't spend time on stuff like reddit? How ignorant. I was browsing and saw a topic I'm actually knowledgeable about and posted. Biotech hedge funds generate huge alpha. These last 5 years have been incredibly challenging, yet you have funds like augc, affinity, Ikarian, adar1, lynx1, caligan, squadron, opaleye, Rosalind, exome, Janus etc crushing the XBI. Most of those have like compounded in the high teens or even more in a very difficult time frame. That's skill. To outsiders it's gambling. But biotech investors have a very good sense of risk/reward. Not every trade will work, but it doesn't have to. Frankly you have a lot of nerve debating me on something I spend my professional career on.

No_Driver_3303

Put some allocation Silver, Copper. Essential for next-gen tech and AI and less supply than ever. You should have Rare Earth and Uranium exposure for the long-term, I personally have $UUUU. Lastly Biotech ETF ($XBI) and Russell 2000 ETF has a great future with especially with the rate cuts.

TheInkDon1

I only trade ETFs now because I've been burned too many times by individual stocks. And I trade them on 3-month momentum. My 3 current favorites (which along with GLD and TLT make up my whole portfolio) are: ICLN, SMH, XBI [This is what they look like](https://imgur.com/a/jebeFaQ) over the past 3 months. If they continue that average 9%/month rate for just the next month or two, capture it with the \~3x leverage of 80-90-delta LEAPS Calls. And when those taper off, find replacements.

TheInkDon1

Sounds like you've made a lot of progress, and I'm glad my trading plan fit with other things you've heard and thought. Once you started looking at ETFs it was eye-opening, wasn't it? If we can find those ones doing 30, 40, 50% per quarter and ride them for a month or two of that, then we ought to be able scalp some of that return ourselves. And then the leverage of LEAPS Calls makes them all the more worthwhile. Good for you starting to sell CCs! They're the simplest thing you can do with options, but few do them. They do have drawbacks when the stock runs too hard and they cap gains, but I like the dampening effect they have when the stock goes down. So read up on them more, and play with them more, but know that you literally can't lose money if you sell them above the Cost Basis of your stock. Yesterday I put on these 5 ETFs in my sister's rollover IRA, and today the same 5 in mine and my wife's: GLD TLT ICLN SMH XBI Gold and Treasuries will always be part of my accounts, then 3 ETFs chosen on momentum. 20% in each. As the momentum choices flatten and roll over, they'll be replaced with the current best ones.

TheInkDon1

Ah, I see now that I did promise to capture fills on all 3. In my mind it was only on XBI, because that was the one So-I-Fink had called out specifically. SMH & ICLN spreads were much tighter, and I was able to walk them in from the beneficial side of Midpoint also. When I've decided to buy, I just buy. I should wait for a down day at the very least, but I don't have the patience. I figure it all works out in the end.

TheInkDon1

Okay, I'm back with order and fill results for XBI, whose LEAPS Calls are a little thin and spreads wide, even with the market open. ***Summary: 3 Buy fills lower than Midpoint.*** [Order 1](https://imgur.com/a/r9hTjif) Real ThinkorSwim account on Schwab. Midpoint was 28.**525**. Offered to buy at 28.**50** and it was accepted. (Filled orders shown at the end.) Did it again: [Order 2](https://imgur.com/a/AwRfW9c) Same Midpoint of 28.**525**, but offer of 28.**40** was accepted. Did it again. But this time the Bid had raised to 28.**45**: [Order 3](https://imgur.com/a/vC8hS4x) Midpoint was now 28.**80,** but 28.**45** was accepted. Here are the 3 fills: [XBI fills](https://imgur.com/a/n7bkJiv) **Price Improvements** $2.50 on the first fill $12.50 on the 2nd $25.00 on the 3rd \---------- $40 'earned' by working the bids up from the beneficial-to-me side. The first fill probably would've gone at 28.40 like the second one did, so I missed out on $10 there because I didn't work it up. I just went in 2.50 better than Mid, not really thinking it would take it. So the next time you see wide B/A spreads, probably don't worry about them. And whether buying or selling, *work your bids in toward Midpoint from the side that's better for you*. All they can do is decline to take your offer. And you just might find yourself 'making' 10 or 20 dollars on each trade. @ u/tumblatum u/BourbonSupreme u/mike_fiveoh u/Mental-At-ThirtyFive u/So-I-Fink

TheInkDon1

Sorry, I don't give much thought to what tickers *are*, just what they're currently *doing*. I say 'much' because I don't touch crypto, and I've been burned by cannabis years ago, but then, those never make my 'smoothness' screen. They're always at the top of my 3m sort, don't get me wrong, especially crypto, but they're so choppy that even before I've looked at the ticker I know it's crypto or MJ. But yeah, I was surprised XBI screened in, because it's Biotech, another sector that's burned me in the past and I no longer touch (biotech/pharma, that whole space). You say "XBI seems quite volatile," but does it? On that graph? Or is that your past experience talking? Because here it is plotted with XME, Metals & Mining, which I hold now, and URA, uranium, which I've traded recently. [XBI, XME, & URA](https://imgur.com/a/QmIdX0b) Which trace is smoother? Building that chart just now I had a bit of an epiphany myself, about the beauty of ETFs. We know they let us see sector trends, but sectors are often buffeted by outside forces, so that even if a company is doing well, it's going to be affected by how its sector is doing. But in Biotech, where there's really nothing working 'for' or 'against' the sector in the short term, then the sector trend plugs away, benefiting from the general success rate of the companies within it, but we don't have to individually gamble on which companies are going to win over the long term. We know that breakthroughs and innovations are happening every day, and the ETF lets us participate in that. Or something like that.

tumblatum

RemindMe! 30 hours (Capture fills on SMH, ICLN, XBI)

Rinolboss

Out of those what witch would you say has the less chance of tanking? XBI seems quite volatile

TheInkDon1

True, but generally irrelevant. Here on the weekend the spreads are especially wide, but when the market opens Monday they'll tighten up some. And even if they're still wide, you generally get filled very near Midpoint. Whether it's the Market Makers being nice guys (ha!), or my brokerage (Schwab) giving me Best Fill, I'm usually filled within in a penny or two of Mid. In fact, I'll do an experiment for us: I'm going to buy 80-delta LEAPS Calls on these 3 ETFs Monday (SMH, ICLN, & XBI) and I'll take a screenshot of my orders, capturing the spreads in the shot, and then my fills. I'll post them here and we'll finally know whether wide spreads on thinly-trade tickers matter. RemindMe! 39 hours (Capture fills on SMH, ICLN, XBI)

TheInkDon1

Thank you! **SOXL** is triple-leveraged, as you probably know, so watch that dude closely. Those 3 in the screenshot above are the ones I'm going to put my sister's money in Monday, so I'm comfortable recommending them to anyone. But have you seen [how I screen ETFs on Barchart](https://imgur.com/a/screening-etfs-on-barchart-zLCc55F)? That's what I did today, and those 3 above (**ICLN**, **XBI**, **SMH**) are the ones I picked based on their smoothness. You can find "higher," but you won't find smoother over the past 3 months. Do you know how to calculate the leverage you're getting with LEAPS Calls? If you really think about the insane returns they offer, you'd be happy to 'settle' for smoother returns over **volatile** potentially-higher ones. Cheers!

So-I-Fink

Liquidity and bid-ask spreads on these are not the best for these. Especially XBI. Something to note.

RayU_AZ

Many 5 years of 20 stocks. I was a ETF guy before, VONG, SOXX, ARKK, XBI, etc... But my returns have been higher with stocks over the last 5 years. But sometimes when I can't decide which semi-conductor company to buy, Sometimes they all look good, then I just park my money into a EFT, SOXX or SMH to own them all.

Practical_Movie_5887

Hey all, I’m 26 and working on a long-term DCA portfolio (10–15 year plan). I’m already maxing my Roth and putting 20% into my 401k. For my brokerage I’m doing: NVDA $41, AMD $22, ARKK $38, SMH $50, QCLN $25, SOFI $25, XBI $25. Wondering what you all think — too much overlap or risky concentration? What should i add or drop ? Appreciate any honest feedback.

Avish_Golakiya

Since many of you asked to keep the tickers more than penny stocks, I threw them in. Also, overall XBI and biotech are in recovery mode. I’m still holding what I have, maybe add some PDUFA for early 2026, and added some commercial biotechs, AUTL, ADCT, ESPR, etc. cheers!

DeyviT22

XBI

JustLurkCarryOn

Love how XBI jumped off a cliff with that tweet lmfao

redditmytit

This will be minimum $10 by end of year. Currently in shares and options. Volume patters on the quarterly chart are absolutely bonkers. $XBI is heating up fast af boi. G’luck.

Tradingland

Market rotation is under way. From tech to health care. XBI perked up. SPRO SGMT PROK ready to moon.

MyStrategicForecast

XBI. Lots of premium that doesn't align with the volatility.

tachyonvelocity

XBI exposure, when the news of pharma tariffs happened, sold a bunch of puts, which turned into 15k gains. Then used that to buy picks and shovels and some specific names. Now I have XBI, IQV, ICLR, REGN, BIO, BRKR, AVTR, EXAS, ILMN, also many big biotech.

tachyonvelocity

The “safe” stocks here are actually unprofitable biotech, like XBI, because the benefit they get from rate cuts are more than losses from employment spending.

_foundation

You know this shit is weird when XBI is ripping on the daily.

andytobbles

Current positions - leaps on XBI, AMD, GLD, WMT, XLV. Full defense with a splash of AMD

Three_of_a_kind3515

WTF… QQQ should be flying.. XBI should tank with 🥭 telling them to lower drug costs in our America.. and, well JOBY.. flying cars.. reminds me of Back to the Future.. (side bar.. Toyota bought a large percentage of the shares as well recently) https://preview.redd.it/mgvp5h6hq9gf1.jpeg?width=1170&format=pjpg&auto=webp&s=fc961e12ea0609b524bd22bac0a1054811dbe3ed

Three_of_a_kind3515

WTF… QQQ should be flying.. XBI should tank with 🥭 telling them to lower drug costs in our America.. and, well JOBY.. flying cars.. reminds me of Back to the Future.. (side bar.. Toyota bought a large percentage of the shares as well recently)

mofosombo

XBI

DoubleFamous5751

I’m buying XBI and BAX on Monday

Any-Inspection-3325

congrats to all who have heed our call to sell semis and rotate into defensives and small caps, enjoy ur big gains later! we are intending to bring QQQ down to .7-.9% along with SMH -2% while rotating to XLV XHB XBI and consumer defensives

slie911

IWM and XBI both got destroyed today. There is often a correlation so I would imagine there was just risk off sell programs happening

PM_STOCKS_TO_BUY

yeah I can also trade sector specific which is decent like SMH, XBI etc… but not as freeeing as individual stocks. Keep me more risk averse at least!

Any-Inspection-3325

protect urself just for this week, keep ur profits and rotate to KHC PG CL BRKB CPB STZ CAG PEP MO XHB XBI all the smart money rotating into these stocks in the massive tech flush this week

dimethylhyperspace

7/18 on a low IV index etf will make time decay pretty negligible whther you close at 10,12 or 3. Unfortunately, its always a guess as to whether selling is the right time or the wrong time, but taking small profits every day is absolutely the right way to do it. Alot of times, Ill decide what I hope to make off an option, and set a sell order for it, right after I buy it. Then I let the market decide. Id be lying if I told you holding is better than selling. You just dont know, and never will. But alot of times, moreso than not, if it's up in the am, itll be up a bit more around the close. But not always lol. There will be no IV crush because there is no binary news event for the XBI on the horizon.

Master-Ebb9786

Grabbed an XBI $88c for 7/18 Wish me luck! (Was that dumb?) 

dimethylhyperspace

Z I haven't bought anything yet..spreads on Zillow are pretty bad. Probably going ATM calls on XBI and at the money puts on Citigroup. Both for 7/18

dimethylhyperspace

Plays for tommorrow: Calls on Zillow, XBI, MSTR(if you like high risk) Puts: Citigroup

tachyonvelocity

Pharmaceutical tariffs are a complete nothingburger. After it was announced yesterday, today XBI is up over 3%. Merck 15%, PFE 18% off the lows. Pharma companies have high margins, even 200% on imports are not going to affect bottom line much. Pharma also has pricing power and people would rather stop spending on discretionary items than pharmaceuticals. The proposed tariffs give way too long a runway for pharma companies to onshore, over a year, by which time, the tariffs become politically tenuous. To me tariffs are an obvious political tool by one person, Trump. If he gets out, then most tariffs are gone. Now, obviously this won't happen for some time, but the most affected stocks that survive, and I expect all big pharma, and related service companies to, will be good long term investments.

dimethylhyperspace

Biotech is breaking out. Might buy calls on XBI

Pin-Last

Spot on. Hoping my google, TSM, and AVGO, & MRVL can do the same.     If you bought XBI at 65 and sold at 90 every time for the last 9 years, you beat every ETF out there except SMH (by a *hair*). I do stuff like that too, lets me stay in cash usually, rn at 4.5% interest. 

Pin-Last

I’m in healthcare for a trade, temporarily my largest combined “position” thru BIB, IBB, CURE, XBI

MagJack

my AI overlord says: Turning $250K into $1 million is ambitious—but absolutely possible with the right mix of strategy, time, and risk tolerance. Let’s break down a few realistic paths someone could take, depending on how fast they want to get there and how much risk they’re willing to stomach: 🧠 Option 1: The Long Game (10–15 Years) - Approach: Invest in a diversified portfolio of broad-market ETFs like VTI, QQQ, or SCHG. - Expected Return: ~8–10% annually (historical average) - Outcome: At 10% annual growth, $250K becomes $1M in ~15 years. - Risk: Moderate. Market volatility, but historically reliable over time. ⚡ Option 2: Accelerated Growth (5–10 Years) - Approach: Tilt toward high-growth sectors like tech (SMH, AIQ), clean energy (QCLN), or biotech (XBI). - Expected Return: 12–15% annually (with higher volatility) - Outcome: $250K could 4x in 8–9 years if trends hold. - Risk: Higher. Sector-specific downturns can delay or derail progress. 🎯 Option 3: Aggressive Strategy (3–5 Years) - Approach: Mix of individual high-growth stocks, 0DTE options, or leveraged ETFs like TQQQ or SOXL. - Expected Return: Potentially 25–40%+ annually—but highly variable. - Outcome: $250K could hit $1M in 3–4 years, but with serious drawdown risk. - Risk: Very high. One bad year could cut the portfolio in half. 🏘️ Bonus Option: Real Estate or Business - Approach: Use $250K as a down payment on income-generating property or seed capital for a business. - Upside: Leverage and cash flow can accelerate returns. - Risk: Depends on execution, market, and management. If this were a real scenario, I’d suggest building a tiered plan: anchor with stable ETFs, layer in some growth, and carve out a small slice for high-risk/high-reward plays. Want to sketch out a sample portfolio or timeline based on one of these paths?

BermudopeHighangle

Rotating from SPY and VTI into XBI Biotech ETF (most undervalued ETF today)

BermudopeHighangle

XBI, COPX, SILJ etfs will outperform SPY for the next year

leomeng

XBI

sneakpeekbot

Here's a sneak peek of /r/wallstreet using the [top posts](https://np.reddit.com/r/wallstreet/top/?sort=top&t=year) of the year! \#1: ["The Power Of Flow & Frequency" - $XBI](https://i.redd.it/f4p96rmj9trd1.jpeg) | [1 comment](https://np.reddit.com/r/wallstreet/comments/1fsefsi/the_power_of_flow_frequency_xbi/) \#2: [Tesla (NASDAQ: TSLA) Stock Soars Amid China FSD Approval Buzz Following Elon Musk’s Surprise Visit](https://abbonews.com/us-markets/tesla-nasdaq-tsla-stock-soars-amid-china-fsd-approval-buzz-following-elon-musks-surprise-visit/) | [1 comment](https://np.reddit.com/r/wallstreet/comments/1ch2xni/tesla_nasdaq_tsla_stock_soars_amid_china_fsd/) \#3: [Early entry time](https://i.redd.it/db1q8i5y6g3d1.jpeg) | [8 comments](https://np.reddit.com/r/wallstreet/comments/1d3pjm6/early_entry_time/) ---- ^^I'm ^^a ^^bot, ^^beep ^^boop ^^| ^^Downvote ^^to ^^remove ^^| ^^[Contact](https://www.reddit.com/message/compose/?to=sneakpeekbot) ^^| ^^[Info](https://np.reddit.com/r/sneakpeekbot/) ^^| ^^[Opt-out](https://np.reddit.com/r/sneakpeekbot/comments/o8wk1r/blacklist_ix/) ^^| ^^[GitHub](https://github.com/ghnr/sneakpeekbot)

tachyonvelocity

Sold XBI puts when it was 77 for 10k, now I don’t even want to see biotech stocks go up nearing expiration. If XBI goes back down to 70s, it’s time to start longs again. Biotech stocks are just completely washed out, like 08 level crash, from high interest rates, pharma tariffs, govt science funding cuts, sentiment is the worst it’s been in a couple decades. But that’s the opportunity.

thegabe101

The funniest shit by far rn is XBI being green when our authoritarian government is threatening to evaporate half of biotech profits 

imdaviddunn

Well, that’s one way to get people to ignore your tariffs in the short term. R.I.P IBB/XBI

Equivalent-Stop7266

$XBI puts should print since pharma is fucked

XXX_KimJongUn_XXX

XBI got fucked up today lmao

longlurke

What happened to XBI? Why did it die so quick all of a sudden?

XXX_KimJongUn_XXX

XBI crashing, -6%, high volume.

Short-Taro-5156

>If he's going to sell calls on unh I'd sell them itm as a way to exit. Selling calls in general is a losing strategy. I'd avoid it as much as possible but if he decides he wants to I'd agree. >I think target and wal mart are both going to be in some pain in the months ahead. Consumer debt really can't handle much more pressure and consumer confidence is just not there. That's why I suggested a long TGT/short WMT trade. WMT is near its highs on declining margins w/ meager growth. Target has seen a small drop in revenue but if the consumer is tapping out both will see a decline and WMT is likely to fall much more given the sky high valuation. TGT doesn't look terrible here as a long on fundamentals but the consumer is certainly shaky. That being said, the stock is down almost 40% since the election, so it would appear that is being priced in to an extent. Either way absolutely a long relative to WMT imo given similar consumer exposure and diverging valuations >I also wouldn't touch LLY or most biotech, especially right now, due to its reliance on medical trials. Unless you can properly hedge the downside or take a defined risk position that you're comfortable with. The hedge to the downside risk is the valuation of these companies. Your view is the consensus: don't touch biotech. Hence why XBI is at 2017 levels. I've found that when everyone can agree directionally on something it tends to be mispriced. That being said I agree that any single early stage biotech name has massive binary risk. The sector as a whole has immense uncertainty surrounding it and given historically low valuations is a reasonable sector to consider a position in for a swing in sentiment. >Mercado Libre is worth noting though since you talked about Mexico and Latin America. Agree this will probably do well on LatAm flows but I'm not a fan of the valuation -- valued like a US company in a LatAM market and feel there are much more compelling options if one wants to choose a single name in Brazil. I'd rather own something like INTR at 16x trailing earnings w/ similar revenue growth to MELI and a larger growth runway

BeerPowered

Healthcare or cybersecurity look good right now less hype than AI but strong growth potential. For healthcare, check XBI or ISRG. For cybersecurity, CIBR ETF or CRWD. Energy isn't saturated either with all these data centers uranium plays like CCJ might be worth a look.

SpectacularRedditor

She said short XBI. And short the dollar. And short the USA. Curisously, she said go long penis pills. Not sure if that was a directed attack or not.

Flipside68

XBI is down 55% since 2021 ARKG is down 80% Biotech needs a resurgence. I believe the reds will move on some health stuff soon after this Tarriff mess blows over. So might be a year or two out still

stocksNblondz

Wild. $XBI had some nice flow Friday, maybe with tariff news this weekend we’ll see some money flow back into these beat up biotechs. Otherwise private equity is going to start to gobble them up and take them private

f00dl3

Because in certain sectors (i.e. Bitcoin, Russel 2000) it did last that long. Actually, XBI and IWM never even recovered. They are still ... shit. XBI will probably remain terrible until RFK is out.

LeonMarmaduke

For the love of god, please don’t do this until you research 3x leveraged ETF’s. It is meant to be a short term play (weeks is a long hold) because the fees and decay (with it being 3x) would kill you long term. Price of these over time gets down to single digits and they reset at a higher price via reverse split to make it tradable for swings and options. See 3x long of XBI is LABU, 3x long of UNG is BOIL etc

androidmj

1. Earnings Reports & Corporate Updates (Q1 & Q2 2025) – These will give insight into Capricor’s financial runway, commercialization readiness, and any FDA interactions. Look for updates on manufacturing scale-up and potential milestone payments. 2. Advisory Committee (AdCom) Meeting Decision – If the FDA doesn’t schedule an AdCom, it’s a bullish sign that they don’t see major issues. If they do, it means more scrutiny and volatility. 3. FDA Communications – If the company drops any PR about FDA interactions (e.g., no major questions, streamlined review), that could boost sentiment. 4. Short Interest & Borrow Rate Trends – If shorts start covering ahead of PDUFA, it could indicate shifting sentiment. 5. Institutional Buying – If funds/hedges start entering, it could signal confidence in approval. 6. Broader Biotech Market – If sentiment in biotech improves (XBI running), CAPR could get tailwinds. If no AdCom is scheduled and earnings show solid execution, adding before run-up season (June-July) might be a strategy. If AdCom happens, expect volatility but also an opportunity if the panel leans positive.

tachyonvelocity

pharma is also cyclical, in relation to interest rates. When IR is high, why would investors take high risks for negative returns now and potential returns many years later? You could just as well put money in a 30-yr bond and get 4.5%. So you get biotech boom during covid zero IR, and now a pretty big downcycle when IR is close to 5%. Is this the bottom? Biotech (XBI) already priced in high inflation and high IR in crashes during 2022 and 2023. Biotech services (CROs like ICLR/IQV, DHR, and not WST) are pricing in this slowdown. So we're definitely closer to the bottom than the top.

leomeng

What? I never liked the guy and initial XBI reaction was negative

leomeng

Look at the candle on XBI

Overthehill410

It funds preclinical crap. Most of actual clinical studies is funded by bag holders of XBI.

leomeng

XBI rallying

Kochina-0430

Is XBI worth buying with yield at 0.14 and expense ratio at 0.35?

prabin96

good luck. hope JPow comes with Tenet hat on.. I had some XBI 120s for March but the day after I bought, some news came related to Kennedy’s plans for healthcare and whole biotech sector took a noise dive.. I am expecting a turnaround of biotech in 2025 so placing a bet on XBI via options. and have been adding like a maniac lol