GILD

O

oldnemesis

http://www.fool.com/investing/2016/...gn=article&utm_medium=feed&utm_source=yahoo-2

http://blogs.barrons.com/stockstowa...e-perfect-cocktail/?mod=yahoobarrons&ru=yahoo

http://www.fool.com/investing/2016/...gn=article&utm_medium=feed&utm_source=yahoo-2

http://bigstory.ap.org/article/d1b3...-profit-tumbles-slower-hepatitis-c-drug-sales

http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.GILD.NAS

http://stockcharts.com/h-sc/ui?s=gild

Trade:
With GILD at 81.83
Jan 60/55 bull put spread for a net credit of $41
Yield = 41/459 = 8.9% in 213 days or 15,3% annualized
Prob = 95%
Expectation = .95(41) - .02(459) - .03(230) = 39 - 9.2 - 6.9 = 22.9

Price.... Profit / Loss.... ROM %
41.25....... (459.00)........ -91.80%
52.96....... (459.00)........ -91.80%
55.00....... (459.00)........ -91.80%
59.59............ 0.00............ 0.00%
60.00.......... 41.00............ 8.20%
65.29.......... 41.00............ 8.20%
77.62.......... 41.00............ 8.20%
89.95.......... 41.00............ 8.20%
102.28........ 41.00............ 8.20%

Market insight or falling knife??
 
Last edited:
Alternate Trade:

Jan 105/110 bear call spread for a net credit of $29
Yield = 29/471 = 6.2% in 213 days or 10.6% annualized
Prob = 92%
expectation = .92(29) - .05(471) - .03(235) = 26.3 - 23.6 - 7.1 = - 4.4

Price........ Profit / Loss........ ROM %
61.33.............. 29.00............. 5.80%
75.95.............. 29.00............. 5.80%
91.33.............. 29.00............. 5.80%
105.00............ 29.00.............. 5.80%
105.29.............. 0.00............. 0.00%
106.72.......... (143.30)......... -28.66%
110.00.......... (471.00)......... -94.20%
122.11...........(471.00)......... -94.20%
137.50.......... (471.00)......... -94.20%
 
Gilead is down 8% today in mid-day training. Upon publishing first-quarter results, the outlook for the company's hepatitis C medications and HIV/HBV drugs doesn't looks as promising.

Gilead stock looks slightly undervalued at this point because the market is undervaluing Gilead’s HIV and oncology portfolios.
 
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