Wednesday, April 8th, 2020

Stock Options Profits from Low Cost Gene Sequencing


There is a race going on to lower the cost human gene sequencing to a level of a comprehensive battery of blood tests. The winners stand to make handsome profits while changing the face of medicine. How can an investor or trader get in on any eventual profits? Can there be stock options profits from low cost gene sequencing? Buying puts or calls on stocks gives the options trader the right to sell (with puts) or buy (with calls) an underlying stock but confers no obligation to do so. With low priced contracts, buying options on a given stock can be a much more cost effective strategy than buying a stock or selling short. The issue often hinges around timing and may require more than a passing familiarity with the biology and technology involved. Several companies are racing to perfect a variety of approaches to fast and efficient sequencing gene sequencing. In order to gain stock options profits from low cost gene sequencing the trader needs to go back to school a little. But, these might be good times for trading options on companies in this field as the race heats up.

The Human Genome

It was only half a century ago that Crick and Watson discovered the helical structure of DNA. Over the years, knowledge of DNA, human genes, what genes do and how they cause or cure diseases has grown exponentially. The human genome is the sum total of all human genes. Human genes are present on long strands of DNA (complex molecules) called chromosomes. These strands are paired, connected side to side along their lengths. Humans have 23 pairs of chromosomes. Some parts of the DNA strands appear to be inert while others are rich in genes. These genes produce proteins which in turn carry out a large variety of often complex functions in the human body. Understanding just how genes produce proteins and what these proteins do has been the increasingly successful job of scientists for years. Having a sense of the medical products and therapies that can come from this research can lead to stock options profits from low cost gene sequencing and other advances in the field of biotechnology. Then as the question, what is an option worth on a promising but new technology?

Gene Sequencing, Cures for Genetic Diseases, and More

The human genome contains roughly 23,000 pairs of proteins that code or produce proteins. Gene sequencing allows scientists to map a chromosome. The field is moving so fast that it is now possible to map the genes of an individual person’s DNA for not much more than $5,000 at Complete Genomics – GNOM, a Silicon Valley high tech company. The stated goal of several competing companies is to lower to cost to below $1,000 a test. Other leaders in this field include Life Technologies – LIFE, and Oxford Nanopore Technologies, a private UK company. Stock options profits from low cost gene sequencing will come to those who understand the fundamentals of what these companies are trying to do and the potential profits when the technology is readily available. Succeeding in options trading will require close fundamental and technical analysis of stocks in this field.

Stock Options Profits from Low Cost Gene Sequencing

Science provides us with lots of startling discoveries. However, the ability to see a practical use for a discovery is a different thing. The ability to take and shape existing technologies, cost effectively is a skill in and of itself. Then there is the matter of marketing a product and beating the competition. For products that have medical applications there is the long process of gaining approval from the US Food and Drug Administration by demonstrating that a new product or treatment does not hurt anyone and brings about significant improvement or cure of a condition. To gain profits from low cost gene sequencing companies need to do more than just develop a new technology. Investors need to avoid being dazzled by high tech and look for potential profits. How to trade stock options in this area will often have to do with watching the news as a technology develops and passes through stages of FDA approval.

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