Gilead Sciences (GILD) Offering Possible 72.41% Return Over the Next 21 Calendar Days

Gilead Sciences's most recent trend suggests a bullish bias. One trading opportunity on Gilead Sciences is a Bull Put Spread using a strike $74.00 short put and a strike $69.00 long put offers a potential 72.41% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $74.00 by expiration. The full premium credit of $2.10 would be kept by the premium seller. The risk of $2.90 would be incurred if the stock dropped below the $69.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Gilead Sciences is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Gilead Sciences is bullish.

The RSI indicator is at 42.14 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Gilead Sciences

Gilead’s Remdesivir May Be a Coronavirus Silver Bullet — But It’s Already Baked in the Stock Price
Wed, 27 May 2020 21:41:10 +0000
RBC Capital analyst Brian Abrahams is a fan of Gilead Sciences (GILD) — in particular, its Biktarvy 3-in-1 drug cocktail for treating HIV-1.It is “Biktarvy's strong profile and robust launch, along with favorable demographic and pricing dynamics,” that Abrahams says “will underpin good HIV franchise sustainability through at least 2025” for Gilead Sciences. Combined with the company's better known continued hepatitis-C drug franchise, which is experiencing declining revenue but market share and pricing stability, and should therefore be able to generate “~$17B in cash flows over the next decade,” says the analyst, Gilead Sciences is likely to outperform the market.At the same time, Abrahams places very little value on the Gilead Sciences drug — remdesivir — that most investors are focusing on today as a potential cure to the SARS-CoV-19 coronavirus that causes COVID-19.But that doesn't mean Abrahams has nothing to say about remdesivir.In fact, Abrahams devotes the bulk of his report on Gilead Sciences to the prospects for remdesivir (mercifully abbreviated “RDV” in the report) and ability to be used to treat COVID-19. Because, you see, while RDV may not hold much profit potential for Gilead in the near term (seeing as it's giving away the bulk of the medicine it has produced so far, in service of alleviating the pandemic), RDV's ability to save lives (and reassure consumers, and investors) has the potential to mitigate the COVID-19-caused recession we're currently mired in, and thereby help to save the economy — and the stock market as well.So what does Abrahams have to say about RDV? Several points are worth noting:COVID-19 new infectionsBased on the latest data, Abrahams estimates that new U.S. cases of coronavirus are growing at the rate of 24,000 a day in May, but that this rate of infection will decline 15% in June to about 20,000 cases per day, and continue falling throughout the summer — but then resume growing again as a second wave of COVID-19 strikes in the fall.RDV vs COVID-19That's the bad news — coronavirus isn't going away soon, and it may not go away not-soon, either. The good news is that clinical data shows that RDV is effective in treating COVID-19, and popular among patients. In the analyst's estimation, in the near term at least, literally “every” COVID-19 patient and doctor treating a COVID-19 patient “will attempt to access RDV if qualified” to do so.RDV versus production constraintsSo demand for the drug is secure, but what about supply? Here's the other big problem. Demand for RDV is robust, but assuming coronavirus infections slow at the 15% rate noted above, and then grow at the 10% rate also noted above, Abrahams calculates that even if only the 15% of COVID-19 patients both eligible to take the drug, and deemed likely to benefit from it, are prescribed RDV, the U.S. market will demand as many as 3,000 doses per day for the foreseeable future. At this level of demand, the analyst forecasts that U.S. demand will exceed supply by about 80,000 “courses” through August, and Gilead's ability to produce enough RDV won't catch up to demand for the drug before September.In a worst case scenario, moreover, in which Gilead is unable to produce the drug at the levels it is targeting, and/or the company distributes 50% of its supply to patients outside the U.S., then potentially only half the patients who need it in the U.S., won't be able to get it before October.Or more poetically, RDV may well be a silver bullet to kill coronavirus. But unless we get more ammo, sooner, we're not going to win the battle before August — and maybe not even then.To this end, Abrahams reiterates an Outperform rating (i.e. Buy) on Gilead shares, along with an $88 price target, which implies nearly 17.5% upside from current levels. (To watch Abrahams' track record, click here)Yet, most of Wall Street is surveying the biotech giant from the sidelines, with TipRanks analytics demonstrating GILD as a Hold. Based on 28 analysts tracked in the last 3 months, 8 rate Gilead stock a Buy, 16 say Hold, while 4 recommend Sell. The 12-month average price target stands at $79.23, marking a modest upside of 6%. (See Gilead stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Gilead study shows shorter 5-day course of remdesivir works as well as 10-day one
Wed, 27 May 2020 20:29:55 +0000
Gilead Sciences Inc, which has suggested that a shorter treatment duration could extend limited supplies of its drug remdesivir, on Wednesday published results of a study showing no significant difference in outcomes between 5- and 10-day courses of the drug for patients with severe COVID-19. Gilead announced “top-line” findings from the trial on April 29. Gilead's trial involved 397 patients hospitalized with severe COVID-19, most of whom were not on ventilators.

Here's Why Arcus Biosciences Is Losing Ground Today
Wed, 27 May 2020 20:21:00 +0000
Investors expecting a buyout offer were disappointed by the collaboration agreement Gilead Sciences offered.

Gilead Sciences Signs $2 Billion Partnership with Arcus Biosciences
Wed, 27 May 2020 18:55:00 +0000
Gilead Sciences (NASDAQ: GILD) and Arcus Biosciences (NYSE: RCUS) have signed a 10-year agreement to co-develop and co-commercialize the next-generation cancer therapeutics in Arcus' pipeline. The agreement also gives Gilead an equity position in the small-cap, clinical-stage biotech company. Shares of Gilead inched up 0.7% Wednesday on the news, but investors apparently thought Arcus didn't drive a hard enough bargain — its stock fell 13% to $29.

Arcus Shares Slide After 10-Year Deal With Gilead Sciences
Wed, 27 May 2020 16:58:00 +0000
Arcus signed a 10-year partnership with Gilead Sciences, under which the two will develop immunooncology therapies.

Be Sociable, Share!

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.