Weekly calls are all the rage today
Gilead Sciences, Inc (NASDAQ:GILD) has been the darling of Wall Street today, after a study conducted by the National Institute of Allergy and Infectious Diseases found that its experimental coronavirus drug remdesivir met its primary endpoint. Now, emergency use of the drug awaits approval from the Food and Drug Administration (FDA), which could come as soon as tonight. The stock was last seeing trading up 6.6% at $83.87, extending its-year-over-year lead to 29%.
Gilead entered the year trading around $65, and hitting an annual low of $62.23 in mid-January. Since then, the shares have seen a meteoric rise on the charts, up 35%. During this climb, GILD's 50-day moving average has contained any pullbacks associated with the volatility of the current market climate and the biotech sector in general.
Despite this ascension, analysts are hesitant of Gilead stock. Of the 22 in coverage, 13 rate it a lethargic “hold” or worse.Echoing this is GILD’s consensus 12-month price target of $76 is a 9.1% discount to its current levels.
All of this buzz today has triggered a frenzy in the security's options its. At last check, over 230,000 calls have crossed the tape, two times the average intraday amount and volume ranking in the 99th percentile of its annual range. The three most popular options today are all calls, with new positions all being opened at the weekly 5/01 90-, 85- and 84-strikes. Buyers of these calls are banking on GILD to keep climbing through the end of the week, when the options expire.