Sunday, February 23, 2014

The Ophir Gottlieb Small Cap Biotech Index (Enhanced Index & ETF Coming Soon)

This isn't advice, this is information. Please read the legal disclosures at the end of this post.

-- The Need
True bio-tech growth exposure only achievable by eliminating market cap minimums, forcing equal weighted holdings, and substantially greater diversification.

-- How is this Different from the NASDAQ Biotechnology Index?

-- You can follow daily blog updates; Know Everything
  1. Largest Stock Moves
  2. Unusually High Option Volume
  3. Unusually High Stock Volume
  4. Index Value Changes

-- What About Performance? (Coming Soon: Ophir Gottlieb Enhanced Biotech Index & ETF)

The Enhancement is an application of machine learning and forensics that will change... everything. Details coming soon. It is NOT applied to the index right now -- this is just a basket of stocks to follow the small cap Biotech sector in a new and more transparent way.

-- What About Risk?
It's enormous... Failures and bankruptcies are common place. The standard deviation of returns is huge, with annual returns ranging from down 50% to up 150% for the entire index. But don't be mislead, the NASDAQ Biotech Index shows annual returns ranging from down 40% to up 130%. This is a risky place for any investment capital. But for those that want exposure, let's get it right.

-- Additional Selection criteria? (for Un-Enhanced Index)
  • Stock Price Range: Any
  • Number of Employees: Any
  • Revenue: Any

Un-Enhanced Index Construction (enhanced index and ETF coming soon)
  • Equal dollar weighted in each firm starting with the prices shown below.
  • Starting Index Value (normalized) 100

Let's see how these firms due over time with all the disasters, bankruptcies, miracles, drug approvals, acquisitions, and everything in between.

Ophir Gottlieb Small & Micro Cap Bio Tech Index (Un-enhanced)

This is trade analysis, not a recommendation.

Legal Stuff:
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.

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