If you’re someone who’s looking to capture volatility with biotech stock, you need to make sure you have the right trading setup so you have all the information you need to make informed decisions in your trading.
Benzinga’s senior vice president, Steven “BigBeat” Orr has created a comprehensive layout that he uses when he’s trading biotech stocks. Continue reading to learn step-by-step how to set this layout up.
Before you begin, first create six workspaces by clicking the + button at the top of the screen.
Workspace 1: Biotech Main
Next, you’ll set up the first workspace. You can rename it: “Biotech Main”. This will be your main page to watch for news related to biotech stocks. The four tools you’ll need to open up are: Newsfeed, Watchlists, Signals and Movers.
To set up your Newsfeed for Biotech Main, you will need to select the sources Benzinga Signals, Benzinga Wire, Press Releases and SEC. You will probably want to color-code each source. This will help you look at things at a glance and know what source it is coming from.
Next, click on sectors in the Newsfeed and check Healthcare.
In your Watchlist tool, you’ll want to import the Benzinga Calendar Biotech watchlist. Head to our help site for the Biotech Calendar watchlist. You’ll want to check back to the help site every few months because the watchlist will change. Sort the watchlist by change percent.
Next, head back to the Newsfeed and filter by the watchlist you just created. This helps filter the Newsfeed so you only see news related to those tickers in the watchlist.
Now it’s time to setup Signals. Make sure each Signal is checked. For Highs and Lows, you only need to select 52 Week Highs and 52 Week Lows. Click on filters, then sector, and choose the healthcare sector.
Finally, it’s time to set up the Movers tool. You can choose whether you want gainers and/or losers, and BigBeat recommends choosing the time period to be “Session.” Once again, you’ll want to select the healthcare sector. You can choose whether you want to modify the market cap and price, but BigBeat recommends not setting a limit. Click the blue bar at the top of Movers to collapse the filters so you can see more stocks at a glance.
This completes the first workspace for your biotech layout.
Workspace 2: Biotech Stock Screener
Head over to your second workspace tab and rename it “Biotech Screener.” The only tool you’ll need to load is the Screener. Here’s how to set it up:
- Select Biotechnology for the industry
- Select Healthcare for the sector
- Choose the following columns: Symbol, Description, Price, % Price Change, Price Change, % Price Gap, % Float, Volume, Average Volume (60 Days), Price to Earnings Ratio, PEG Ratio, Inside Ownership, Institutional Ownership, and Market Cap.
Now, you can sort the Screener by any of these columns. Whether you’re looking for gappers, volume, share with low float, or something else, you now have a list of biotech stock to work with.
Workspace 3: Biotech Calendar
Now, it’s time to set up your “Biotech Calendar” workspace. To get started, add two calendar tools to this workspace. The left calendar will be for earnings, and the right calendar will be for analyst ratings. Make sure to select the correct calendar for each tool. Next, click the date and choose “This Month” for each of the calendars.
In the earnings calendar uncheck the following columns:
- Time Announced
- Period Year
- Confirmed Date
In the analyst rating calendar, uncheck the following columns:
- Analyst’s Name
Like the Screener, you can now sort the columns. Before you sort, make sure to add your Biotech Calendar Watchlist to the filter at the top of each calendar.
Workspace 4: Biotech Insiders
Next, name your fourth workspace “Biotech Insiders.” The purpose of this workspace is to see what the insiders of biotech companies are doing with their stocks. To do this, add a Newsfeed to this workspace.
First, select sources and make sure only SEC is selected.
Next, add the keywords: form4 and price
Now, you’re going to filter it even more. Select sectors, and once again choose healthcare. You’ll also want to filter by the same Biotech Calendar Watchlist you made earlier. This will now only show SEC filings that are form4 in the healthcare industry and are stocks in our watchlist. Form 4 is an SEC filing that deals with insider trading.
Workspace 5: Biotech Options Sweep
Next, it’s time to set up the fifth workspace, “Biotech Options Sweep.” To get started, add a Newsfeed. First, make sure Benzinga Signals and Benzinga Wire are your Newsfeed sources.
Next, follow the following steps:
- Use the search bar to filter for the keyword: option
- Use the search bar to filter for the keyword: sweep
- Filter the sector by healthcare
- Filter the Newsfeed by your Biotech Calendar watchlist
This workspace will now show you a running list of option sweeps.
Workspace 6: Biotech Stock Research Page
Finally, you’re going to set up our “Biotech Research Page.”
All you need to add to this page is the Details tool. This will let you pull up all the necessary details on a stock you may be looking at. Sometimes, BigBeat will pop this tool if he finds it necessary, but other times he just switches his view to this page.
This Biotech Monitor Layout is perfect for you when you’re really looking to target biotech stocks every day. Make sure to save your layout so you can always come back to it, or want to display different layouts on different monitors.
If you haven’t yet, start your free trial of Benzinga Pro to try out this Biotech Monitor workspace.