Gilead (NASDAQ:GILD) has earnings coming up in 10 days time and it may provide a nice opportunity for bulls to pick up some more shares. If you are a DRIP investor that likes to invest dividends back into oversold stocks, then use earnings to wither pick up some cheap stock or collect more premium. The current IV rank in Gilead is 85% (it will go higher) which means you could sell a $73-$70 put spread (Nov 4th Expiration – 3 days after earnings) for $0.85 per contract at present.
I’ve been trying to pick a bottom in this stock for a while now as I like its financials and current cheap valuation.
Sentiment is at its lowest point all year and the advantage bulls have now is that the stock is trading with a 6.5 earnings multiple.