Stock market volatility has reached its lowest levels in four months (as measured by the VIX).
But believe it or not…
That’s a great thing for me.
To make fast profits you need stocks to be volatile. That said, if traders aren’t finding volatility in the stocks they normally trade… they’re naturally going to start looking at other places like penny stocks and small-caps.
In other words, we might have the most trading opportunities we’ve had all year coming up!
Pretty phenomenal when you consider I made nearly $25K last week and am up over $250K year to date (YTD) in trading profits.
(I teach people how to trade using my own real money. If you want my best ideas in your inbox or alerted via text then take me up on my 90-day challenge right here.)
That said, it’s time for my latest catalyst swing trade.
Now, if this is the first time you’re receiving these let me explain to you what’s going on because my catalyst swing trades are different from other types of trades.
What’s the big difference?
On my normal setups, I’m looking to take anywhere between 5-10% returns over a one to four day period. However, with these catalyst swing trades, my goal is to return 20% or better in a slightly longer time frame.
And you know what?
All my picks have been cheddar so far (knock on wood)… like the HAIR alert last month.
“Jason Bond… thank you for HAIR. I didn’t sell before earnings because it was stagnant. I got lucky and the catalyst you thought would happen almost exactly happened. I am appreciative of your teachings, stock picks. I know you are an extremely busy man I just wish you could answer the questions we post every night and I wish I could join your upgraded group. I made over $15k today and it wouldn’t have happened without your pick and a whole lot of stress. I want to get better and I want you to be my mentor, albeit from a far but I’m gonna try to learn everything I can from you. Thank you Jason.” ~ R.O.
“WooHoo just cashed in $20,687.33 on HAIR. Holy !@#$ !!! Thanks Jason!! – B.D.
Now, subscribers of my Jason Bond Picks services get about 10 (sometimes more) of these alerts per month… if you would like to see all of them, as well as my all my trade alerts in real-time via text message and email…. Then click here.
That said, my latest alert is a biopharma stock that could see a large uptick from here given its most recent catalyst.
Read on for my full report.
Before we get into the play in Affimed N.V. (NASDAQ: AFMD), let’s take a look at what this company does.
Affimed is a clinical-stage biopharmaceutical company. The company engages in discovering and developing targeted cancer immunotherapies. Affimed is developing product candidates in the field of immuno-oncology – this space represents an approach to cancer treatment aiming to harness the body’s own immune defenses to fight tumor cells. Additionally, Affimed is developing single and combination therapies to treat cancers and other life-threatening diseases.
Affimed N.V. was founded in 2000 based on technology developed by the group led by Professor Melvyn Little at the German Cancer Research Center. The company aims to treat cancer by redirecting immune cells with multi-specific antibodies to achieve optimized killing of malignant cells. Moreover, Affimed leverages its modular and versatile ROCK (Redirected Optimized Cell Killing) platform that generate proprietary, next-generation bispecific antibodies.
Now, Affimed is not a one-trick pony.
AFMD has several product candidates – AFM11, AFM24, and AFM13. While AFM11 is put on hold, the company’s lead product candidate – AFM13 – shows promising efficacy results and a number of additional studies for this candidate will be launched shortly.
On August 28, 2018, Affimed announced a collaboration agreement with Roche’s Genentech unit. In this deal, Genentech paid Affimed $96M upfront and agrees on other near-term committed funding. Affimed would receive potential regulatory and commercial milestone payments as well as royalties totaling up to $5B over time.
What We’re Watching in Affimed Stock
Now, we assume not only Roche will remain the sole believer in this company but also the broader market will appreciate the “Gründlichkeit” of this German company that has its headquarter in the same location as the biggest ERP software provider namely SAP.
The best part about this play is that there are three potential catalysts, and it only takes one to send the stock higher.
Affimed Stock Catalysts
1) The company may announce new studies.
On December 7, 2018, Affimed shared the clinical pathway for its lead product candidate AFM13. Dr. Leila Alland, Chief Medical Officer of Affimed, stated, “AFM13’s clinical profile to date is very encouraging…The recently presented data at ASH increase our confidence that AFM13 holds significant therapeutic value for patients with CD30-positive lymphoma. Our team is looking forward to initiating the registrational study for AFM13 in the first half of 2019 and it is our commitment to develop this potential treatment for patients as quickly as possible.”
Around three months remain in the first half of 2019, and we’ll be looking for any hints towards the start of a new study. Although it is marked as confidential information in the Genentech agreement, one can assume that such a start of a new study will also be a payment milestone of several million.
2) Institutional stakes and presentations.
Affimed representatives were in San Francisco attending various conferences and meetings with investors and corporations back in January. Consequently, this resulted in a number of new institutional stakes from Integrated Core Strategies, Novo Nordisk, Wellington Management Group and Bain Capital Public Equity Management.
More recently, on February 28 and March 13, Dr. Adi Hoess, Chief Executive Officer, presented at the Cowen and Company 39th Annual Health Care Conference in Boston. Additionally, two abstracts from the Company’s innate cell engager program have been accepted for poster presentation at the American Association of Cancer Research (AACR) Annual Meeting 2019 in Atlanta on March 31.
That said, we’re anticipating more institutional interest and stakes will be published in the coming days and weeks.
3) AFM11 future.
On 8 October Affimed placed its product candidate AFM11 on clinical hold after the occurrence of Serious Adverse Events (SAEs) with three patients, which included a death and two life-threatening events.
The company stated, “We will be working closely with the FDA and other global health authorities, the Safety Monitoring Committees, and the studies’ clinical investigators to review the events, carefully assess all of the data and determine next steps for the AFM11 program. We intend to provide an update on AFM11 upon completion of the evaluation”.
If this evaluation indicates that there is not a direct link, the share price could bounce substantially as the market has priced in this negative news.
Affimed Chart Pattern
Now, I’m looking to buy AFMD stock under $4. If any positive catalyst hits… AFMD could break above the $4 level… thereafter, that positive catalyst could push the stock to $4.50, or its August 2018 high of $7.35.
Let’s get a closer look at the stock…
Looking at the Fibonacci retracement levels… AFMD has some support around $3.40 ($3.36 specifically)… on the longer term chart, there’s also support at $3.
On the hourly chart, here’s what I’m seeing:
There’s a bull pennant forming, and it looks like the stock is shaping up for a breakout. If you don’t know anything about my three chart patterns – get an inside look here.
Not only that, on January 10, a large number of April call options were bought with a strike price of $5… I don’t know about you, but I don’t know a whole lot of successful traders who will just throw money away on a random trader. That said, someone expects a large move to happen shortly… and I’m thinking the same.
Disclaimer: I’m long shares of AFMD.
The diary of a real $ trader,