Speaking of Biotech, I really liked that idea on LABU (Biotech Ultra-Long) from yesterday's webinar - enough to add it to the STP and the OOP (since they don't have longer options):

• Sell 10 LABU Sept $5 puts for $1.35 ($1,350) 
• Buy 10 LABU Sept $5 calls for $3.70 ($3,700) 
• Sell 10 LABU Sept $9 calls for $2.20 ($2,200)

That's net $150 on the $4,000 spread (magic number today) and LABU is a 3x ultra bull so all IBB has to do is twitch higher and this thing pays off big.  I like it because the downside risk is owning 1,000 shares of LABU at $5.15, miles below the current price and that makes you long-term long on biotech - which we certainly want to be!  

Want to see more?

Reap the benefits of one of our paid membership plans and get access to articles like these PLUS:

• Insightful daily market reviews
• Educational guides and posts
• Access to our Virtual Trading portfolios
• Unique trading opportunities
• LIVE trading webinars
• Intraday market commentary from Phil
• Our community of traders