Market News

January 4, 2017  Wed 10:24 AM CT

Gilead Sciences is rebounding today, and traders are betting on more gains by the end of this week.

Our scanners show that 3,000 Weekly 75.50 calls expiring this Friday were purchased for $0.40 to $1.57 today. Volume surpassed open interest of 1,207 contracts, indicating that this is fresh buying.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

GILD is up 3.22 percent to $76.55 in morning trading but is down 5 percent in the last three months. The drug maker's last quarterly report on Nov. 1 was mixed, and its next earnings release is expected after the close on Jan. 31.

Overall option volume is about average in GILD so far today.

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