I would like to make a suggestion on a stock where a bottom appears to be setting up.
The stock is Gilead Sciences, Inc. (GILD)
GILD reported on October 28th, with an earnings beat.
My suggestion is going to be a debit spread. And I am I going to suggest you trade the December 11th expiration.
This gives the stock about three weeks to make a move.
GILD is trading around $60.85 as I write this.
Here is how you open the position:
Buy to Open December 11th - $60.00 Call for $2.20
Sell to Open December 11th - $65.00 Call for $.45
The net debit will be $1.75 per spread.
Based on the tracking portfolio, I suggest you limit the trade to a 6 lot or 1% of the portfolio.
The maximum gain on a five lot would be about $1,950 or 1585%.
