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Biotech under pressure: how to trade it

Biotech's had a rough run.

Last September Democratic candidate Hillary Clinton tweeted that if elected, she would take on drug-price hikes.

Her tweet sent the sector tumbling, and while there have been periods of recovery, the sector is down 20% year-to-date.

With a Clinton victory looking more likely, and the possibility of a Democratic Congress, the last few days have not been pretty for health care.

On Tuesday both the XLV and the IBB posted their worst performance since June 24, and during trade on Wednesday the IBB fell another 2%.

The "Halftime Report" experts and Raymond James' senior biotech analyst discussed if the dip presents a buying opportunity, or if these names have further still to fall.

Trader disclosure: On October 12, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Joe Terranova: LongADBE, ALB, BBT, FB, FXY, NOC, PSX, SLB, SYK,TJX, TMO, TXN, VRTS, VXX. PUTS: IWM

Jim Lebenthal: Long:AAPL, BA, C, CSCO, DCO, DIS, EEQ, GM, INTC, JCP, KMI, MPC, ORBC, PFE, QCOM,QRVO, SPLS, TIF, TRN, TWX, WGO

Jon Najarian: LongStock: XON, CIEN, KR Long Calls: AAPL, BBY, BMY, BRCD, CMA, EBAY, GDX, GLD,GPS, INTC, JNPR, MGM, MSFT, NVAX, SCHW, TWTR, WFT, VIX

Pete Najarian: LongStock: AAPL, BAC, DIS, DISCA, GE, KMI, KMIA, KO, LUX, PEP, PFE CALLS: AAL, ABT,AMD, ATVI, BABA, BAC, BBY, BHI, BSX, CNX, COP, COTY, CRM, CS, CXW, DAL, DISH,ECA,EL, ETP, GS, GT, HAL, INTC, JBLU, JCP, KBE, KGC, KMI, KO, LLY,LOW, M, MRO, MRVL, MUR, NAV, NBR, SBUX, SLV, TMUS, TTS, TV, TWTR, VRX, WFT,WLL. Puts: CLF, EEM, MBLY, WFC