How to buy and short Novavax shares
Biotechnology stocks like Novavax (NVAX) are becoming increasingly popular due to the global interest in Covid-19 vaccines. Read on to find out how you can get exposure to NVAX with us.
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How to trade Novavax shares
Trading Novavax stock means you’ll have the opportunity to speculate on both rising and falling share prices without taking ownership of any assets. You’ll ‘go long’ (buy) if you think the share price will rise or ‘go short’ (sell) if you think it’ll fall.
Follow these steps if you want to trade Novavax shares
- Create an account or log in
- Search for ‘Novavax’ on our trading platform
- Select ‘buy’ to go long or ‘sell’ to go short in the deal ticket
- Set your position size and take steps to manage your risk
- Open and monitor your position
With us, you’ll do this using leveraged derivatives like CFDs.
Trading on leverage means you only need to put down a deposit – called margin – to open a position.
Please note that trading on margin could lower the cost of opening a position, but it magnifies your risk as profits and losses are based on the full value of the trade (not just the deposit). Make sure you understand and manage your risk before committing to a trade.
How to short Novavax shares
You might think that the Novavax share price isn’t going to rise in the near future, in which case you can go short (sell). You’ll make a profit if your prediction is correct – ie the share price goes down – and you’ll make a loss if the share price goes up. Follow these steps:
How to close your Novavax position
You can close your trade if you want to lock in profits or limit losses. Here’s how:
A brief history of Novavax
Novavax, a US biotech company, was established in 1987 to drive experimental vaccine development. In its more than 30 years, though, it has never brought a vaccine to market. In 1995, it listed on the NASDAQ (US Tech 100 with us) under the ticker NVAX.
Notable dates and developments:
- 2013: Novavax acquires a Swedish company named Isconova AB, and names its new subsidiary Novavax AB
- 2015: the Bill & Melinda Gates Foundation donates $89 million towards vaccine development for human respiratory syncytial virus; Novavax completes phase 1 and phase 2 trials for Ebola and RSV vaccines, respectively
- 2016: Novavax experiences failure of its first phase 3 trial (respiratory syncytial virus)
- 2019: the respiratory syncytial virus vaccine clinical trial fails again
- 2020: Novavax receives fast track status for an improved flu vaccine and announces development of a Covid-19 vaccine
- 2021: phase 3 trials for the Covid-19 vaccine commence
What’s the Novavax business model?
Novavax’s business model is centred around developing vaccines that prevent infectious diseases, such as Covid-19, seasonal flu, Ebola and RSV. With science and technology at the core of the business, its main aim is to create a healthier society through innovative vaccines.
Novavax partners with various governments, research centres and biopharma organisations – collaborating to bring advanced products to market. It’s most recent development, in partnership with the Coalition for Epidemic Preparedness Innovations (CEPI), is the NVX-CoV2373 vaccine for Covid-19. The UK phase 3 clinical trial revealed a 96% efficacy rate against the first strain of Covid-19 and 86% against the B.1.1.7 variant.1
Reported revenue for the year ending December 2020 was $475.5 million, up from $18.6 million in the previous year. The enormous increase (2456.4%) was attributed to its involvement with CEPI and Operation Warp Speed (OWS). This US government programme plans to deliver millions of Covid-19 vaccines in 2021.
Novavax share price: how to analyse Novavax shares
There are two methods you can use to analyse Novavax shares, though it would be wise to combine them. You can use technical and fundamental analysis to study the NVAX share price.
- Technical analysis entails using chart patterns, technical indicators and historical price action to help you predict future price movements
- Fundamental analysis looks at elements such as a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors, to help you determine share price movements
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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