Take Profits on Celgene
Insider Selling Leads to Early Exit
Dear Bottarelli Research Member,
On Thursday, January 5th, you bought the Celgene April 60 Calls (LQH DL) for $9.70. The premise for the trade was a three part bullish signal that included CELG announcing a 2-for-1 stock split, hitting a new 52-week high, and bouncing off their 50-day moving average.
As I write, the CELG calls are performing beautifully, trading for $13.00. That’s good for a 34% gain. But I noticed something that could be cause for alarm.
Reading Barron’s this weekend, I noticed that Celgene was the #1 stock for insider selling. Flipping to page M10, you see that seven (7) different Celgene insiders sold over 1.5 million shares…amounting to $95,799,242 in stock. That’s a red flag. So let’s take profits now.
PLAY: Sell your Celgene April 60 Calls (LQH DL) at or above $12.60, good for the day.
Congrats on your gains.
Lock and load!
Sincerely,
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