Long $XBI w/ 3:1 Risk to Reward

Reasons I like this trade:

1. Biotech sector has shown relative strength compared to the market this year.

2. Full rotation of stochastics to oversold conditions.

3. Picture perfect inverted head and shoulders formation seemingly forming, with right shoulder materializing.

Position details:

– Long 200 shares at $84.41

– Sold 2 SEP 30 $78 Puts @ 1.85

– Stop below $80, target $100+ for 3:1 risk to reward.