When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
BioTech Trade Alert - Gilead Sciences, Inc. (GILD) – EXPIRATION AT MAX PROFIT
EXPIRATION of Gilead Sciences, Inc. (GILD) February 2021 $57-$60 in-the-money vertical BULL CALL spread at $3.00
Closing Trade – NOT FOR NEW SUBSCRIBERS
2-19-2021
expiration date: February 19, 2021
Portfolio weighting: 10%
Number of Contracts = 37 contracts
This was a short-term trade that Gilead Sciences, Inc. (GILD) will stay above $60 by the February 19th expiration.
Unless GILD drops over 8%, readers who put on this deep in the money call spread will collect maximum profits.
You don’t have to do anything with this expiration.
Your broker (are they still called that?) will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning, February 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
My medium-term target is $75-$80 so if you are in buy and hold mode, then buy and hold the stock.
GILDs cash cow right now is Veklury.
In the third quarter, the COVID-19 therapy generated nearly all of the company's revenue increase and they will need to diversify into other revenue to prevent a sudden drop off in growth.
There are some concerns, however, that Veklury's growth trajectory will taper off significantly as the pandemic comes to an end and new treatments emerge.
Other GILD pharmaceutical products include its HIV drugs Biktarvy and Descovy continue to hit on all cylinders.
Other notable developments are cancer cell therapies Yescarta and Tecartus. Unfortunately, declining sales for Gilead's older HIV drugs and its hepatitis C franchise are offsetting some of these gains.
Gilead's pipeline includes 42 clinical programs, and eight of them are late-stage candidates. Unfortunately, three of those are targeting indications for filgotinib. Those programs could be in jeopardy after Gilead gave up on hopes of winning U.S. approval for the drug in treating rheumatoid arthritis.
Here are the specific trades you need to close out this position:
Expiration of 37 February 2021 (GILD) $57 calls at…………..………$7.70
Expiration of short 37 February 2021 (GILD) $60 calls at………….$4.70
Net Proceeds:……………………..…….………............................…….....$3.00
Profit: $3.00 - $2.65 = $.35
(37 X 100 X $.35) = $1,295 or 13.2% in 22 days
