Celgene Hits Three Indicators in One Day
CELG Looks to Rally Higher
Dear Bottarelli Research Member,
They announced a 2-for-1 stock split on December 28th…
They hit a new 52-week high today at $66.20…
And they easily bounced off their 50-day moving average while staying well above their 200-day (barely seen below in red)…
That makes a 3-for-3 day in Celgene (CELG – NASDAQ). Just look at the chart:
Celgene is a biotech company. Their lead product is called THALOMID (used for the treatment of acute cutaneous manifestations of erythema nodosum leprosum) but you probably know them for their RITALIN family of drugs.
Ritalin is used to treat attention deficit disorder and attention deficit hyperactivity in school-age children. If you’ve ever been around a child with A.D.D., you know these drugs are worth every penny.
Dating back to last January, Celgene is up nearly 150%.With a market cap of $11.19 billion, Celgene still rates far below the $98.72 billion market cap of their top competitor, Amgen (AMGN – NASDAQ). To me, that signals room for growth. And with a 3-for-3 indicator day, it’s time to buy CELG calls.
PLAY: Buy the Celgene April 60 Calls (LQH DL) at or under $10,00, good for the day. Current big/ask spread is $9.60 to $9.90. I’m targeting a move up to at least $15.00 on these calls, possibly even up to $20.00. As a measure of protection, place a stop loss at $6.00.
UPDATES
MDC has bounced off its 52-week low, using the recent market rally to put together two solid days of upside action. Therefore, your February 65 Puts (MDC NM) have been stopped at $3.00.
TALX February 45 Calls (TUB BI) were bought for $4.40. They currently trade for $5.80, good for a 32% gainer. Hold.
Psychiatric Solutions February 60 Calls (BYU BL) were sold for a 107% gainer.
Intergraph February 50 Calls (INQ BJ) were bought for $2.20. They currently trade for $1.70, just enough to stop out the position for a slight loss.
CTCO February 35 Puts (QOK NG) were bought for $1.40 and they currently trade between $1.75 and $1.95, good for a 32% gainer. Hold.
RWT February 45 Puts (RWT NI) were bought for $3.60 and they currently trade for $3.20. Hold.
Sincerely,
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