28 January 2021 was a strange day in markets. The GameStop short squeeze — driven by Reddit’s r/wallstreetbets — was in full swing. GameStop, AMC, Nokia, and a handful of other stocks were being pushed to extraordinary prices by retail traders coordinating online. It was remarkable to watch.
I did not short stocks, and I had no position in any of the squeeze names, though I had previously swing-traded Nokia for small profits. I watched from the sidelines and moved on.
What I did instead that day was buy Ocugen Inc (OCGN) at $1.60. Here is why.
The reasoning
1. The Bharat Biotech connection
Ocugen had a licensing agreement with Bharat Biotech, the Indian vaccine manufacturer behind Covaxin. I had followed Bharat Biotech’s work and had confidence in their track record. As I understood it, the tie-up gave Ocugen rights to commercialise Covaxin in the United States — a significant potential market.
2. Early reports on Covaxin and the UK variant
At the time, early reports suggested Covaxin was likely to be effective against the UK Covid variant. The one I had read was a CNA article. As variants were becoming a central concern, a vaccine showing broad effectiveness seemed to me to have meaningful upside.
3. Available capital
I had just sold half my Atossa Genetics position at $3.50, having bought at $1.37, so I had cash available and was looking for the next entry.
I want to be honest: I had not done extensive due diligence on Ocugen itself. The Bharat Biotech angle and the CNA article on Covaxin and the UK variant were the primary drivers. At the time of writing, the stock had already dipped to $1.58 from my entry of $1.60.
What happened next is a different story, told in My first outside trading hour trade.
This is not financial advice. Just a record of one trade and the thinking behind it.