Good Bet On Gilead (GILD) Price Bounce
Here at TheOptionPlayer.com we set up a Gilead Sciences, Inc. (NasdaqGS: GILD) short-term (30-day) option strategy. Investors could:
- Buy the standard September expiration GILD $80 call for $2.15 (Wednesday’s closing bid/ask mean).
Our target price to exit trade is $85. Projected gain is an approx. 130% profit (Excludes commissions and fees)
Why we recommend it:
As evidenced in the chart below, Gilead Sciences, Inc. stock got beat down three weeks ago after the company announced disappointing quarterly earnings and analysts subsequently downgraded the stock. Over the past few weeks the price stabilized at a support level on downward momentum. This week pundits started re-evaluating Gilead and a Motley Fool article recommends buying the stock based on current valuations. Plus several publications including Street.com suggest Gilead Sciences, Inc. is ripe for some type of merger activity that should unleash value. And today an article in Barron’s discusses analysts’ strong “buy” recommendation on Gilead’s stock. Downward momentum has dissipated and is trying to turn up as the stock surged higher today.
52-Week High: $117.06
52-Week Low: $78.25
Average Volume (3 month): 10,132,695
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