Enzo Biochem Has Momentum On Its Side

Enzo Biochem is definitely taking advantage of the pandemic. Sales for its testing equipment, etc soared in its second quarter to come in at almost $32 million. This was a huge gain over the same quarter of 12 month prior. The market consequently rewarded the stock once the numbers were released.

Being a low priced stock, Enzo at approximately $4 a share brings opportunity to the table. The reason being is that despite the strong rally today, shares are still trading at a lower valuation that the stock´s 5-year averages. Furthermore, being an optionable stock, implied volatility has spiked to approximately 240% in the back month. This means we have the possibility to reduce basis if that is indeed our favoured startegy.

If indeed, we have a breakaway gap here in play, price has no business dropping below the underside of the gap. The $3.60 level for example should not be breached if this is the start of a new bull run in this stock. Covered calls or naked puts look attractive in ENZ at present due to one´s ability to defend if needs be.

Volume spike in Enzo Biochem

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