Friday, May 14, 2010

GILD Aug 21 2010 37.0 Put @ 2.08

Last Monday the 10th, I bought 5 puts on GILD after sensing things were turning negative on this stock. The markets are also turning, so I thought I would give my first negative or down trend trade a try. Things started off bad with the announcement by Gilead that over three years they would be doing an 8 billion stock buy back. I stuck with the trend and after Thursday and Friday down markets, I’m in the money.

I would really like to see this stock fall through 37 before the end of May then I may take my profit. Right now the puts are in a trading range of 2.22 and 2.27 or about a 6.5% gain. Either way, I like the trend and the profit so far.

DWCPF

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