There may not be enough May 22 open options to warrent pinning action today, however $110 expires about 95% of the puts worthless and about 50% of the calls worthless with the call/put ratio at about 2:1.
I've seen this a few rimes where a low volume stock that has positive events occuring is brought down day after day then wham, a boughtout announced once you least expect it. Reason is that low volume stocks can be manipulated down so the buying company can purchase at a better price. It's completely acceptable and legal.
May knock it back a few bucks on what looks like a bad day for the markets.
Pete's call regarding options is weird as 11K put options is not a big deal. If you compare to number of call options, there are many slots with 11-40K open call options, so i don't see the 11K puts as a big deal. Likely that person or persons is either providing insurance for their GILD shares or using them in a strategy combo with other options. The MM's and pros are playing with this stock as it's really one of the last remaining bargins that combines growth with value. They are accumulating at as low a price as possible. Can you blame them?? When the majority are happy with their positions then you'll see GILD run as MM's will use the same method they use to hold GILD down, but in an opposite fashion to rally it.
Have you noticed that price is sometimes pinned on Fridays to avoid big call volumes well the same happens to large put options.
Most of the deep pockets write puts not buy them so consider this point at $100 as very strong support (as already displayed today). Todays dip below $100 will more then likely be the last dip below $100 this year.
Isn't the PE under 10 now? Maybe some stock prices should correct here as many are overbought, however GILD shouldn't be one of them, I wouldn't be surprised if this isn't the last pull back before it runs to $110. Also bought much AMAG this morning as it had blow out earnings with very strong growth and it's PE is actually less then GILDs.
It's only up 25 cents on the day. Gives shorts a chance to cover and investors/traders a great entry point.
Profits are yet to come, they haven't been made yet. If you cover now you can mimimize your loss.
The market has a way of making fools out of the majority's opinion. Also many are saying BIIB and CELG went down so so will GILD. They both missed their respective whisper number but GILD will easily beat all estimates so you can't compare. Plus both BIIB and CELG rallied after last earnings where GILD tanked so it's GILD's turn to rally this quarter.
Think about it, the price was set high intially as GILD only wanted extreme cases Hep C cases to be treated. That way sales could ramp up rather then peep and plateau, which is what is happening. GILD knew that in order for Hep C treatments to be used by the masses the price would have to come down to justify the purchase of HepC for patients with less severe symptoms. Bottom line is the price has to be in line with the disease's severity. I believe this was GILD's plan all along. ABBV may have made it happen a quarter or two faster but they were not the core reason for the price discounts. Also GILD is just getting started. Investors seem to think Harvoni/Sovaldi are the be all/end all. There are in the best position to tackle Hep B and NASH and make any acquistions they require to help here or with Oncology and/or HIV.
The reason it went down last quarter is that many feared the discount would hurt the top line. The exact opposite is occurring as proven by the increased script numbers, so that fear has proven to be false. Could easily see a $15-$20 gain once the earnings number is announced. Also the CEO has already been saying that they will be making an acquisition soon and we already saw what happened on last weeks rumors regarding that.
They are still talking about Express Scripts that happened last year, saying that may hurt numbers. Seriously why does Yahoo even post their trash?
Well it likely would of hit $4 today if not for a biotech selloff. I think we approach $4 tomorrow or Wednesday and $5 by the end of the week.
It sure got my attention. Bought today and will be holding for as long as it takes to break $20.
It won't get any traction, you can't sue for bad test results (especially how that they have come in better over the longer testing period). They didn't know the results a head of their release. There isn't a case here.
Most option volume at the $104 for Buys/Puts even though it's not a major options date. Since stock volume is low today pinning manipulation is possible.