Trade idea for the week of 3/14/2016
- Anup Ved
- Mar 14, 2016
- 1 min read
So I was scanning through my charts and came across a very bullish set up in GILD. I agree that GILD and Biotech Sector as a whole has shown relative weakness as compared to the upmove in S&P but this week money could rotate from energy to biotech as energy is a little too overbought. Also the daily as well as the weekly setup for GILD is perfect for a huge move in either direction. My bias is towards the upside looking at various indicators.
The trade idea is to buy GILD calls for the month of April which gives us enough time. Tomorrow I will be buying April $90 calls for around $2.27. Better is if GILD goes to 86.86 at open we can get the same calls for around $1.70. My target is $97 soon which will make the call worth $4.98 giving us more than 100% profit. Stop is $85.90
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