Price has memory, 100-106 area is particularly painful for anyone who got in this stock.
As you can see in the yellow box, Gilead spent a month in that range, many people wanted to play for a box/sym tri breakout and ride the "year-end beta chase/Santa Rally" (whatever the fvck that is, some kind of "conventional wisdom" CNBC had planted in newbie traders' brain I guess)
Anyway, I'd expect an increase of selling pressure as $GILD approach 103-106, a confluence of MA and trendlines. And believe it or not, it's made a series of lower highs and lower lows, I know this pattern has lost its relevance in this bull market, but believe me, it's important.
You can sell the FEB 105/110 call spread for roughly $1.7( or wait till it gets to 105-106 and sell the 110/115 for $1.7, just by eyeballing), or just wait a while for confirmation, let the price show you where it wants to go.
As you can see in the yellow box, Gilead spent a month in that range, many people wanted to play for a box/sym tri breakout and ride the "year-end beta chase/Santa Rally" (whatever the fvck that is, some kind of "conventional wisdom" CNBC had planted in newbie traders' brain I guess)
Anyway, I'd expect an increase of selling pressure as $GILD approach 103-106, a confluence of MA and trendlines. And believe it or not, it's made a series of lower highs and lower lows, I know this pattern has lost its relevance in this bull market, but believe me, it's important.
You can sell the FEB 105/110 call spread for roughly $1.7( or wait till it gets to 105-106 and sell the 110/115 for $1.7, just by eyeballing), or just wait a while for confirmation, let the price show you where it wants to go.