I took this trade as a post earnings play This was not my typical set up, not my typical position size. I got a bit of a gap move in my favor this morning but then it began to fade. I decided just to bang it out as this is not my normal type of trade.
I made enough for a nice lunch but not much more.
In 90.75
out 91.06.
Showing posts with label GILD. Show all posts
Showing posts with label GILD. Show all posts
Thursday, July 24, 2014
Wednesday, July 23, 2014
Opened FOLD, GILD
FOLD comes out of my Telechart 2000 Scan. A new software program for me.
I like how FOLD retook its high on good volume. Biotechs have been strong and this has nice flag (Albeit a large % (18) given this stock price .) In June the pull back was only 8% but the pattern is similar-- dip rally dip go.
Its a positive sign that a major biotech investment firm (perceptive advisors) has been buying in advance of the release of phase III. They picked up 4 Million shares, which likely the big pop at the end of last month.
Long at 4.21
STOP: 3.50 which puts just under 2R on the trade. More than I would normally feel comfortable... But there's a But. The August 5 Calls were bid at .80! an amount I feel is insanely high. IV 231% v HV of 101. If FOLD didn't move at all it would amount to a 20% return in a month. I sold CC's against 1/3 my position. So even if this goes against me, I've hedged and reduced my R at risk to roughly 1.25 depending on when and how the drop and stop would occur.
GILD
Monster earnings = I chase and not much action afterwords. GILD looked very nicely pressed against the 90 handle. It then blew out earnings so I buy 90.80 the stock doesn't go up a zillion $ like many of the stocks that have beat latley. FB, CMG, BIIB. It bobbles and fades a bit.
I took this small so my Stop will be under 85. 1R
I like how FOLD retook its high on good volume. Biotechs have been strong and this has nice flag (Albeit a large % (18) given this stock price .) In June the pull back was only 8% but the pattern is similar-- dip rally dip go.
Its a positive sign that a major biotech investment firm (perceptive advisors) has been buying in advance of the release of phase III. They picked up 4 Million shares, which likely the big pop at the end of last month.
Long at 4.21
STOP: 3.50 which puts just under 2R on the trade. More than I would normally feel comfortable... But there's a But. The August 5 Calls were bid at .80! an amount I feel is insanely high. IV 231% v HV of 101. If FOLD didn't move at all it would amount to a 20% return in a month. I sold CC's against 1/3 my position. So even if this goes against me, I've hedged and reduced my R at risk to roughly 1.25 depending on when and how the drop and stop would occur.
GILD
Monster earnings = I chase and not much action afterwords. GILD looked very nicely pressed against the 90 handle. It then blew out earnings so I buy 90.80 the stock doesn't go up a zillion $ like many of the stocks that have beat latley. FB, CMG, BIIB. It bobbles and fades a bit.
I took this small so my Stop will be under 85. 1R
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