Bull Flag - all jump on board I'll keep on adding to biotech as money is rotated out of tech stocks into more safe havens with dividends.
GIS trade ideas
GILD Covered Call SOLD -1 GILD 100 17 NOV 17 90 CALL @1.00
Adjusted Cost Basis $87.70
Just a few hours ago I didn't see any chance of turning a profit on this investment any time soon. Unexpectedly the stock rallied over 7% today (now up 25% off lows) and above the average year end analyst target.
Expected Outcomes:
- With selling off the 'unlimited upside', if GILD is above 90 (19 delta strike) by Nov expiry and the stock gets called away, I'll at least have brought in 3.76% on my adjusted cost basis (plus dividend yield).
- If the stock is under 90 by Nov expiry the call expires worthless and I keep the credit to reduce my cost basis, and sell another call. This is about 80% probable this point, at 10% below the 90 strike and more than 2 months to expiration. If the stock pulls back sharply I will likely buy back the call and walk away with most of the profit, and aim to sell another call on the next rally in GILD.
I've been sitting on this dog for over a year, suffering through a 27% draw down at the low in June. The stock dividend yields 2.75%, which is at least something while you wait.
The stock is well rated, excellent price to free cash flow, but a 'value trap' with questionable earnings growth long term. Some of the apparent catalysts for todays big up move were acquisition of KITE and FDA approval of new class of gene therapy drugs.
So I jumped at the chance to make this into a profitable trade after waiting for many months. My main goals are to bring in cash flow, reduce cost basis, and reduce positive deltas to form a more neutral portfolio. Yes, it's entirely possible GILD could be worth double what I paid for it in a couple years and I'll have walked away with chump change. Or the market gets a long over due pullback and it's another year of sideways moves in the $65 - $90 range. Who really knows for certain what will happen?
GILD double bottomGILD bouncing within channel with a double bottom. Look for confirmation tomorrow for a long.
Picking a WinnerWorking on Wall Street. and on track to getting my stockbroker license, I might as well start analyzing stock prices. this seems like it will be a good trade in its due time...
long GILD play before and after earningsGILD is a value stock with cheap P/E. it broke downtrend recently and it may be a start of long uptrend. last 2 weeks were good volumes in this stock for an uptrend.
long with target price 75.9 before earnings. after earnings it could drop to 69 and if it holds 69 it can go up to 80.
Long GILD callsGild had a nice pullback from its run up and I have purchased September calls. Targeting the 73.50 area. Proven wrong below 68.
Gilead / GILDLooks to me like it retraced 62% over the last couple of years and it's now on the brink of a trend change with 1) a potential bullish monthly MACD crossover and 2) a potential break out above a 2 year falling wedge. This hypothesis assumes $64 is the bottom. $76 looks like the first step followed by $87. GLTA!!
GILD bounces from all-time low since year 2014. A BUY.1. Fundamental = Buy.
2. Technical = Buy.
3. News/Rumors = Buy.
A Potential Entry Point For Gilead Sciences (GILD)Gilead Sciences went down in the last couple of year by almost 50%, and compressed into a 3-year old demand zone. As you can see on the weekly chart, the price has compressed nicely into this zone in the last few weeks. 2 weeks ago there was a very strong price action from the bottom of the zone, in the form of a big engulfing bullish candle. A similar candle can be seen on the monthly chart (the monthly candle of June).
Last week closed with hesitation, and now it's time to wait and see whether the price will retrace a bit down to give a better entry point for new buyers. I drew a line on the weekly chart, but it's basically based on the daily chart, where you can see a trendline, which starts as support, then turns to resistance, and now that it's been breached up, it could serve as support again, should the price come back down and test it.
This is the area of entry - roughly around $66-67, with a stop below the demand zone (around $60) and a potential profit somewhere around $82-85. So a risk of ~10% can potentially yield a reward of ~22-27%.
