Clovis Oncology Inc (NASDAQ:CLVS) is leading biotechnology company that is focused on developing and commercializing anti-cancer agents globally. This stock has been under pressure since peaking on July 1, 2017. At that time, CLVS stock traded as high as $99.45 a share. Today, the stock is trading around $59.00 a share. This is about a 40.0 percent decline in the stock in the past six months.

The stock is now trading down towards its 200-week moving average. This important moving average is around the $55.00 level. This area should serve as major chart support when it is tested. This is a very attractive area for a bounce in the stock. 

Now please understand, all biotechnology stocks do have a lot of risk in them. So the way that I will trade the stock will probably be with a call option. By using options I will simply be risking the premium paid for the call option, therefore knowing my maximum loss if I'm wrong on the trade. The positive upside of using a call options is that the potential percentage gain will be much greater than if I actually bought the stock outright.