Biogen Inc. (BIIB) was priced at $470 in 2021 but is now trading at around $140. Recently, BIIB broke above a major downward trend line from 2023, reaching a peak of $160 before pulling back to the breakout level. This pullback offers a chance for potential buyers to enter at the trendline, with technical analysis suggesting a possible target of $190. In other market news, the Dow Jones jumped 550 points after an upgrade from Apple. Gold also rose by 2%, influenced by expectations of rate cuts from the Federal Reserve. Geoff Kendrick from Standard Chartered predicts Bitcoin could hit $500,000 by 2028, noting that core crypto fundamentals remain strong despite recent dips. Currency pairs have experienced changes tied to economic news. The EUR/USD pair declined as the US Dollar strengthened. Similarly, the GBP/USD is under pressure with traders anticipating upcoming UK inflation numbers. The overall market is volatile, affected by geopolitical risks and trade issues, which also impact commodities like gold and silver. FXStreet provides forward-looking statements for informational purposes, urging thorough research before making financial decisions. On October 20th, 2025, Biogen shares present a strong technical setup. The stock has broken a key downtrend line from 2023 and is now retesting that breakout point near $140. This backtrack offers a clear entry point for those looking to invest, anticipating a move upward. For derivative traders, this suggests considering call options to benefit from the expected rise toward the $190 target. It’s advisable to look at options that expire in December 2025 or January 2026, focusing on $150 or $160 strike prices for a suitable balance of risk and reward. Recent options data indicates a significant increase in call volume for these expiration dates, suggesting others are betting on upward momentum. This bullish outlook is supported by strengthening fundamentals as we approach Q3 earnings in early November. Sales for the Alzheimer’s drug Leqembi, a key driver for growth, are projected to exceed $650 million this quarter, a notable increase from earlier sales this year. The biotech sector is also starting to show positive signs after a challenging 2023 and 2024. The SPDR S&P Biotech ETF (XBI) has risen nearly 5% this month, as the stabilized interest rate environment attracts more growth-oriented investments. This sector momentum could further boost Biogen’s stock. An alternative, more cautious strategy is to implement a bull call spread, such as buying the December $150 call and selling the December $180 call. This strategy reduces the initial investment cost and sets a clear profit limit, making it a cost-effective way to bet on a rally. This approach is especially wise considering potential volatility around the earnings report. However, we must remain aware of the risk that this breakout could fail, as it has in the past, notably after the Aduhelm disappointment in 2021. If the stock closes below $135 on a daily basis, it would invalidate the bullish outlook. This level indicates when to exit the position and minimize losses.

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