Play GILD Earnings
Add Strangle Now
PLAY: Buy the GILD February 46 Puts (GDQ NT) at market, good for the day. Also buy the GILD February 47 Calls (GDQ BK) at market, good for the day.
Dear Bottarelli Research Member,
As we begin the afternoon, let’s get positioned for Wednesday afternoon earnings out of one of the top biotech companies in the world, Gilead Sciences (GILD – NASDAQ).
With a robust product pipeline that includes products such as Truvada, Viread, Atripla, and Emtriva for human immunodeficiency virus, Hepsera for hepatitis B, and Tamiflu for influenza A and B, it’s clear the GILD is one of the leaders in the new-age of biotechnology. As you can see from the chart below, the stock has recently experienced large candlestick moves, which is exactly the volatility that we’re looking for.
Whether it’s the big upside move in early November or the big downside move in mid-December, a continuation of this pattern would be ideal for a new earnings strangle. With option premiums that are low and strike price increments of $1.00, this sets up for an ideal earnings position. Therefore, let’s get ready to ride GILD’s earnings news now!
PLAY: Buy the GILD February 46 Puts (GDQ NT) at market, good for the day. Also buy the GILD February 47 Calls (GDQ BK) at market, good for the day. The total cost should be right around $2.00. As all of our earnings strangles, do not place a stop limit or sniper sell on either position at this time.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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