FEMY Update
When to Trim a Winner
A week back I mentioned FEMY (Femasys) as a speculative biotech play with legitimate science but a long timeline to any M&A action. Today it’s up 10.84% and sitting at $0.87, so let’s talk about how to manage a winner.
The Situation:
FEMY got FDA approval on November 3rd to continue their final trial phase for FemBloc (non-surgical permanent birth control) and secured $12M in financing. The stock popped 25% that day. Since then, it’s been consolidating and today it’s moving up again on volume.
The Reality Check:
This is still a 2027-2028 story. U.S. FDA approval won’t come until then at the earliest. The company is burning $4.5M per quarter and will need more capital (which means more dilution). M&A interest exists, but buyers will wait for more FDA clarity before paying a premium.
So why trim now?
Because we’re up 25% on a speculative position, and the next real catalyst is 12-18 months away. In biotech, you take profit when the market gives it to you. You don’t wait around hoping for more.
My Trim Strategy:
Tier 1 Trim: $1.00
Sell 25% of position
Lock in profit at psychological resistance
Reduces risk, keeps upside exposure
Tier 2 Trim: $1.25-1.50
Sell another 25% if momentum continues
Let remaining 50% ride as lottery ticket
The Discipline:
This is how you manage speculative positions. You don’t marry them. You don’t “diamond hands” them. You take profit when the market gives it to you, reduce your risk, and let a smaller position ride for the home run.
FEMY could go to $2-3 if trial data is positive. It could also go back to $0.50 if they hit dilution or trial delays. By trimming at $1.00, I lock in 45% gain on that portion, reduce my exposure, and still have 75% of my shares for the upside.
The Lesson:
Speculative plays require discipline. Set your trim targets before the stock moves. When it hits those levels, execute without emotion. The market doesn’t care about your feelings. It only rewards discipline.
FEMY at $1.00 = trim 25%.
No exceptions.
The Flip Side - Buy the Dips:
If FEMY pulls back to $0.60-0.65 after this run, that’s where I’d consider adding back what I trimmed. The key to these specs is buying the dips and trimming the spikes. That’s how you keep your basis low and manage risk. Most traders do the opposite - they chase the spike and panic sell the dip. Don’t be most traders.
Stay disciplined. The Crusade continues.
Thank You All stay strong & make money no matter what is going on
The tiered aproach makes a lot of sens here especialy given the long runway to FDA aproval. The $12M financing helps but that burn rate means dilution is inevitble. Taking profts at $1 lets you derisk while keeping skin in the game.