The back story: Back in August, I told you that Eiger Biopharmaceuticals (EIGR) looked like a great opportunity. It was down from its 52-week high of $18 to a low of $8, but I thought that two upcoming catalysts could spark a nice runup for the stock. I took a 1,000-share position Aug. 17 at $7.96 and sold at $9.33 on Sept. 5, but it gained a bunch more since, closing Wednesday at $13.65.

Take a look at Kyle’s Aug. 16 piece on Eiger here.

The set-up: EIGR plans to release interim data on a Phase 2 study for Pegylated Interferon Lambda in hepatitis delta virus at the American Association for the Study of Liver Disease meeting Oct. 20-24. That’s in just a few trading days. At the J.P. Morgan Healthcare Conference Jan. 8-11, EIGR will release Phase 2 data on Ubenimex, a pulmonary arterial hypertension drug. Poor data on either of those events could lead to another good trading opportunity. A big move down would create a big gap up with little to no resistance for the next catalyst run.

How I’m playing it: I’m not. It’s run way past my target, which was about $10 a share. It’s up about 70 percent, so now would be a solid time to book those profits if you still have a position, when it’s up quite a bit and the market’s really hot.

Selfishly, however, I’m hoping for negative data in the next week or so, because I’d like to play the second catalyst run, with a nice chart setup when it’s undervalued.


Kyle Dennis runs Kyle Dennis’ Biotech Breakouts ( He is an event-based trader, who prefers low-priced and small-cap biotech stocks.  He has no shares, options or open orders in EIGR, having last owned the stock in early September, when he traded it as described in this commentary.

Kyle Dennis

Straight outta college Kyle Dennis taught himself to trade, and then made over $7 million in trading profits by the time he was 28 years old. Kyle reveals how to find, track, and profit from lucrative trades for exceptional profits. Thousands of traders follow him every day to learn how to target these high probability trades.

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