Summary
Intercept looks attractive due to how oversold it has become.
Nash is the real potential here and Intercept’s offering is out in front.
This company doesn’t have a big market cap, competitive advantages or a diversified portfolio of drugs.
Therefore Risk management on any potential trade is paramount.
Intercept Pharmaceuticals (NASDAQ:ICPT) is a stock I have been looking at for a while. The stock has been caught in a trading range since last September and has yet to produce a weekly swing. The encouraging aspect though of its trade-bound nature has been that price has managed to hold above the lows of about $57 we saw in late September. Intercept though is a stock where strict risk management must be upheld in my opinion.
Why Well its over-reliance on the future success of OCA definitely brings risk to the table. The implied volatility levels alone should alert investors of where this stock could trade. At present, Intercepts’ IV has come back down to around the 55% mark but has been close to 90% in recent months which demonstrates the uncertainty surrounding this stock. Intercept may be volatile but it it is not without potential. Let’s go through some fundamentals of Intercept and how I would recommend scaling into a long position here.
