Bought to open XON


Bought 500 shares of XON at $24.67. Total cost after commission was $12,344.95, or $24.69/share.

price target

This stock will have difficulties, until it decisively breaks through its 50-day SMA. But if it can do so, it should be ok to at least $30.

stop loss

The 6-month closing low is $23.82, which is 3.5% underneath the current price. If it drops below this level tomorrow or Friday (on a closing basis — probability of that happening < 27%), I will sell.

time frame/catalysts

This is a mostly technical buying opportunity. I won’t give this a lot of rope to develop. If nothing good happens this week, I will likely cut bait.


Intrexon (XON) is a beaten down biotech stock, which for 3 days was challenging its declining 50-day SMA, and got rejected today. This failure brought it below its 10 and 20-day SMAs as well. The stock is now very close to a 6-month low, without really having any significant bad news against it. Volume was also anemic: Despite the substantial 4.7% drop, volume was the lowest of the last 30 trading days.

If the stock moves up substantially tomorrow, it might become a candidate for a covered call strategy. Otherwise, I’ll get rid of it very soon.

Intrexon daily chart, from tradingview.comIntrexon daily chart, from

July 13, 2016 at 2:10pm · XON · buy to open · stock

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