I'm holding IBB. I was playing around at the 300-330 range buying and selling a few months ago then got bored and moved on. When it dropped recently under 300 again, I started picking some up around 290 down to I think around 240 or so. I'm averaged around 260-270 give or take and am holding out for a recovery. Planning to trim at 300 and sell at 330-340.
As for whether or not to get into it, well hmmm. From what I've read, the general opinion seems to be that the sector was due for some correction of sorts, since it has been doing quite a run up over the years so I suspect that some of this drop is an overdue pressure relief, and it was just looking for a catalyst, which it got from a few places... There was VRX, MNKD, etc and Hilary tweeting about it, etc, so some high profile notes, some questionable accounting, some price gauging, etc. So I think that the sector was sort of due for a pull back anyway, but a few bad incidents also gave it an overcorrection there.
Meaning it might be a while before it ever gets back to that 300 range... but that being said I think it may have been oversold and I've got more buy orders from 230-250 and am comfortable picking it up in that range. Would I recommend someone buy in at 270-290? Probably not. I think it'll come back up, but that's still leaving a lot of room to go lower. From the 255 it's at now... Could there be some other incident that knocks it further? Sure. Plus I think there might still be some uneasyness related to who's getting elected. Now I like biotech in general because I think it offers plenty of volatility, meaning opportunity for gains, and buying the index is a lot safer than trying to pick individual companies, so I like IBB. Like I said I'm in around an average of 260-270 I think and will happily buy more at 250, 240, and 230 (if it gets there), and plan to trim close to 300. So potentially a +20% return over the next 6 months to a year, with a few unknowns and risk, but the stability of an entire industry index. So risk/reward wise, it works for me. I'd feel more comfortable recommending this one at say 250 or less, and a nibble at 250 with stronger buys closer to that 240 and 230 mark with a little allocation left just in case it goes further.
I'm still fairly new to all this stuff and those are my thoughts on it. I'd really be open to hearing any thoughts about this, whether for or against etc. And these are just my feelings about it, I've done no technical analysis or math here...
The other thing I'd look into is also adding to the biotech allocation that follows clinical stage biotechs (I think BBC?)