GILD/Jabob - I still like them but as a long-term value play - I don't see anything exciting in the near-term. At $95Bn ($73) they should steady out at $8.5Bn in earnings so they'll look more attractive once they prove their downsizing is over (was $13.5Bn in 2016 and just $5Bn last year). The assumption is revenues stay around $21Bn and margins stay around 40%. Operating margin was 54% last year, they just took a lot of charges which are, hopefully, behind them.
We do not have GILD in the LTP so let's sell 5 2020 $70 puts for $8.50 ($4,250) to collect our monthly rent and remind us to keep an eye on them for a possible bull call spread.
At the moment, the 2020 $60 ($17)/$75 ($9.20) bull call spread is just $7.80 so 10 long spreads ($7,800) and 5 short puts would give you a net $3,550 entry on the $15,000 spread that's almost all in the money and then you could sell 3 July $80s for $1.10 ($330) using 85 out of 631 days and even if you just do that once a quarter - it's another $2,000+ towards the trade.
