DailyPlay – Opening Trade (GILD) – August 29, 2025

GILD Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Gilead Sciences (GILD) presents a constructive setup as the stock consolidates near recent highs with support levels intact. The company benefits from a diverse drug portfolio and consistent cash flows, while investors continue to reward its stable earnings profile and dividend yield. Although the stock trades at a modest premium to peers, Gilead’s stronger growth expectations and profitability metrics continue to support the case for upside. With technicals aligning constructively and fundamentals providing a solid foundation, GILD may be positioned to advance toward the $125 price target in the near term.

Technical Analysis
GILD recently broke above the $114 resistance level and has since pulled back to retest it as support, a constructive sign for the ongoing uptrend. The stock is trading above its 50-day moving average and remains comfortably above the 200-day, reinforcing a bullish longer-term structure. With RSI near 60, momentum is healthy without being extended, leaving room for further gains. The bullish thesis remains intact as long as $110 support holds.

Fundamental Analysis
From a fundamental standpoint, Gilead maintains a balanced profile of steady earnings, dividend support, and attractive growth relative to its sector. While its valuation is slightly above the industry median, growth and profitability metrics more than justify the premium. Key data points highlight the strength of its outlook:

• Forward PE Ratio: 14.07x vs. Industry Median 12.29x
• Expected EPS Growth: 24.15% vs. Industry Median 6.46%
• Expected Revenue Growth: 3.25% vs. Industry Median 3.61%
• Net Margins: 21.87% vs. Industry Median 16.08%

Options Trade
To express a bullish view with defined risk, consider selling the GILD October 10, 2025, $110/$105 put vertical for a $1.50 credit. This trade collects $150 in premium with a maximum risk of $350, resulting in a risk/reward ratio of roughly 2.3:1. The position profits if GILD stays above $110 through expiration, which aligns with the current technical support zone. If the stock finishes above $110 at expiration, the spread expires worthless and the strategy captures the full credit received. This structure provides an efficient way to capture upside while maintaining a favorable margin of safety.

GILD – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 5 GILD Oct 10 $110/$105 Put Vertical Spreads @ $1.50 Credit per Contract.

Total Risk: This trade has a max risk of $1,750 (5 Contracts x $350) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $350 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bearish/Neutral

Relative Strength: 3/10

OptionsPlay Score: 97

Stop Loss: @ $3.00 (100% loss to value of premium)

View GILD Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View GILD Trade