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??
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.