Gilead (GILD) broke its 200-day moving average to the downside. Unless something positive happens, the stock could fall under $85. However, I’m recommending that you sell to close this GILD February put option today to secure the gain, given the higher rate of time decay at the moment.
At the same time, I’m recommending that you buy to open the GILD May 2015 85 put up to $7.20. This way we can profit from a continued fall in the stock and not have to worry about time decay issues.
I’m also recommending that you exit the Coca-Cola calls (KO), XIV and the VXX March 32 put.
Once this Santa Claus rally tires out, the market could pull back.
Happy Holidays…
Ian L. Cooper
Forgotten Profits