Gilead sciences

[Ugochukwu Okafor]

Gilead sciences, makers of the new Corona virus treatment drug, is on the verge of getting FDA Approval.
This means profit to us.

Here's how to trade Gilead.

Buy 100 units of Gilead Science

Buy a long straddle :
i.e a long call option at 82.50 strick and expires July 17th

Long shot option at 82.50 strick that also expires July 17th

After you enter these positions, enter the following trades.

Set a stop-loss order at $80.30

Set a trailing stop order that triggers at 89.30 and stops at $0.5

Then wait for it.

 

[Admin]

An you explain why people should by a straddle here? And what’s the reason for this trade position? So you think the drugs may fail?

 

[Godspower]

An you explain why people should by a straddle here? And what’s the reason for this trade position? So you think the drugs may fail?

I think he is saying the company will be on a bull run after FDA approval and feels by his fundamental analysis we should go long on it.

 

[Ugochukwu Okafor]

An you explain why people should by a straddle here? And what’s the reason for this trade position? So you think the drugs may fail?

No, I don't think the drug may fail, there's no way to tell if it will fail or succeed. I just want to make money no matter what the outcome is. That's the why behind the straddle.
I think there will be a bull run when the fda approves the drug. That is the why behind the long position