Bearish Fly in GILD

[Steven Place]

After some serious weakness in biotech stocks in general, GILD has seen a nice run post earnings. But it’s running hot and coming into some resistance, so I’m expecting this stock to cool off a bit.

I’m going to take a bearish fly in GILD. This is 1/3 of a position.

Sell to open Jun 77.50/85 call spread for 3.05
Sell to open Jun 77.50/70 put spread for 2.05

On a move to 82 we will add another butterfly.

[Steven Place]

Got my 20% return on risk so now is the time to bail and move on to the next trade.

[Author]

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