Best Stock on the Market

Call Spread on GILD on 9/27/2013

Bullish Cup & Handle on GILDGilead Sciences (GILD) is a biopharmaceutical company.

The Company discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases. Its products include Stribild, Complera/Eviplera, Atripla, Truvada, Viread, and Emtriva for the treatment of human immunodeficiency virus (HIV) infection in adults; and Viread and Hepsera products for the treatment of liver disease. The company also offers Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa, a tablet used for the treatment of chronic angina; Lexiscan/Rapiscan injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging; Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; and Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B.

In addition, it provides other products, such as AmBisome, an antifungal agent to treat serious invasive fungal infections; Vistide, an antiviral injection for the treatment of cytomegalovirus retinitis in patients with AIDS; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular macular degeneration. Further, it has product candidates in various stages for the treatment of cardiovascular diseases, respiratory diseases, and oncology diseases/inflammation.

This stock has been featured twice before this year. Shares have formed a bullish "cup & handle" and prices are expected to move higher. Today, Gilead's idelalisib was granted orphan designation in the treatment of follicular lymphoma, according to a post to the FDA's website. 

52-Week Trading Range: $32.07 - $64.74 

Last Trade: $63.42

Here is the trade: 

Trade

  • Buy 1 November $62.50 Call at $3.60
  • Sell 1 November $67.50 Call at $1.41
  • For a net debit of $2.19

Profit/Loss Analysis

  • Breakeven at $64.69
  • Maximum profit is $281.00 at strike of $68.00
  • Maximum loss is ($219.00) at strike of $62.00

Closing Summary

  • Sold 1 November $62.50 Call at $4.30
  • Bought 1 November $67.50 Call at $1.50

Position closed on 10/16/2013 at price of $2.80 with a 27.85% gain in 18 days.

Updates

10/16/2013 11:52:32 AM

We are closing GILD call option trade with success.

Back to Portfolio