Gilead Sciences (GILD) NewsBite : Gilead Continues to Move Higher on Patent Decision

Posted on Thursday, May 22, 2008 10:49 AM

Gilead Sciences Inc (GILD) opened at 52.79. So far today, the stock has hit a low of 52.72 and a high of 53.87. GILD is now trading at 53.63, up 1.15 (2.18%). The stock hit its 52 week high of 54.59 earlier this month and set its 52 week low of 35.22 in August. The stock has been rising steadily since last August. Gilead has been moving higher after the company announced this week that the U.S. patents office has upheld one of the four challenged patents regarding the company's AIDS medicine, Viread. Technical indicators for GILD are bullish but deteriorating slightly, while S&P gives the stock a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider a July bull-put credit spread below the $47.50 range. GILD hasn’t been below $47.50 since March and has shown support around $52 recently. This trade could be risky if the company's earnings (due out right near July expiration) disappoint, but even if that happens, this position could be protected by the support the stock might find around $50, where it bottomed out in April. [RHF- Seven Summits Strategic Investments NewsBite]