Gilead Sciences GILD – NASDAQ has a very unique problem on its hands. Rather than requiring ongoing treatments, the biopharmaceutical company’s Hepatitis-C drugs cure the disease once and for all. Is being too good at the job why GILD has been stuck in a prolonged downtrend going on two years now?
According to a sharp trader who bought 10,000 GILD December 70 calls for $2.28 apiece earlier today, a turnaround is coming.
Costing $2.28 million, GILD has to increase 12.2% to the break-even price of $72.28 for this trade to pan out by expiration. With plenty of upside, it’s easy to envision GILD running up near $80. Our customer only needs a portion of this hypothetical situation, as he’s lined up to make a million bucks for every dollar GILD extends above $72.28.
CEO Buys $1 Million of Own Stock: “I believe in putting my money where my mouth is,” he said after making such a public splash. And to back it up, he just delivered the best Q1 in company history. Click here to get the stock.