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Traders: Here's how to play the election risk in biotech

The "Fast Money" traders evaluated the election risks for biotechnology stocks after President Barack Obama officially endorsed presumptive democratic nominee Hillary Clinton, who has been critical of drug pricing. New York billionaire and presumptive GOP nominee Donald Trump has also come out against the health care industry's pricing strategy.

Trader Guy Adam says there's opportunity to get into the iShares Nasdaq Biotechnology ETF and that, if elected, the sector may not even be Clinton's main target in the early part of her presidency.

"I think if Hillary gets elected — she said her first 100 days is a bullseye on Wall Street. So, I think biotech will be on the backburner," he said.

Trader Brian Kelly said that he thinks it's a good idea to sell biotechnology stocks now, ahead of the general election.

"Probably, going into the election, it's probably more speculation and hyperbole. After the election, it's probably where you want to start looking at buying biotech," Kelly said.

Trader Tim Seymour said that the "lack of clarity and lack of certainty ... are not helping here."

His advice is to look for relative value. For example, Seymour said "Gilead, against a Celgene, is an interesting trade, if nothing else, based upon [the fact that] one has underperformed, one hasn't on valuation."

"So make yourself essentially sector neutral, but find yourself a company that has underperformed," he said.

Disclosures:

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Guy Adami's wife, Linda Snow, works at Merck.

Brian Kelly

Brian Kelly is long 30-year bond, Bitcoin, GLD, SLV, TLT, US Dollar, UUP. He is short Copper, JJC, Yuan.

DAN NATHAN

Long PFE Long TWTR, GE long May 28 puts XHB long June put spread IWM long Sept 100 put XLB long June put spread XLF long May/ Sept Put spread HYG long June put spread XLK long Sept Put spread FXI long Aug put spread SMH long Aug put spread, KO June/Aug put calendar, long UA call calendar, long PYPL call calendar, long TLT Sept risk reversal, XLV July calls, MSFT June/July put spread, long C Sept puts.

TIM SEYMOUR

Tim Seymour is long AAPL, AVP, BAC, BBRY, CLF, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, GLNCY, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. Tim's firm is long ABX, BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM, WYNN, XRT.