Gilead Sciences, Inc. (GILD) Put Players Make Rare Appearance

Gilead Sciences, Inc. (NASDAQ:GILD) is one more victim of Hillary Clinton's price-gouging tweet

by Josh Selway

Published on Sep 21, 2015 at 3:17 PM

Gilead Sciences, Inc. (NASDAQ:GILD) is yet another biotech stock hurting today, due to presidential nominee Hillary Clinton's anti-price-gouging tweet. Although this comes directly on the heels of positive late-stage trial data for GILD's hepatitis C treatment, the shares were last seen 2.8% lower at $105.46 -- which has led to a fresh round of bearish option trading. 

By the numbers, GILD puts are changing hands at a pace 1.6 times the intraday average. Traders have taken a particular interest in the 107 strike, and appear to be buying to open the weekly 9/25 and October puts. If traders are indeed purchasing new positions, they are betting on extended losses from the drugmaker through this Friday's close, and the close on Friday, Oct. 16 -- the contracts' respective expiration dates. 

This preference for puts over calls is a sudden change for GILD speculators. During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security has amassed a call/put volume ratio of 3.07. Not only does this mean more three calls have been bought to open for each put, but it also ranks higher than 86% of all other readings from the past year. This signals a stronger-than-usual appetite for calls over puts. 

Elsewhere on the Street, analysts have taken a decidedly bullish tone. Sixteen brokerage firms cover GILD, 13 of which say the shares are a "buy" or better. Moreover, the equity's average 12-month price target of $125.06 represents a 19% premium to current levels, and territory never before charted. 

Regardless, Gilead Sciences, Inc. (NASDAQ:GILD) has been a steady climber on the charts. Even with today's losses, the stock is 12% higher year-to-date. 

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
Zoom Stock Brushes Off Senate Warning
The U.S. Senate just warned its members against using Zoom as a video chat platform
Costco Stock Dips on Bear Note
Deutsche Bank cut its price target to $295 from $300
The Top Lithium Play of 2020
Click to continue to advertiser's site.