Regeneron Pharmaceuticals (REGN) Weekly Trade

Regeneron Pharmaceuticals, Inc. Call Credit Spread (NasdaqGS: REGN)

TheOptionPlayer.com sets up a Regeneron Pharmaceuticals, Inc. (REGN) short-term (8-day) option strategy. Investors could simultaneously:

Sell the June week-two expiration REGN $322.50 call for $1.30 (Thursday closing bid/ask mean)
AND
Buy the $325 call at .60 (Thursday bid/ask mean)

The difference between funds received and paid out is a $.70 per share credit which we keep if Regeneron Pharmaceuticals, Inc. stock closes below $322.50 on Friday June 13th, but immediately exit the position if it appears the price will end up higher. Another suggestion is if the price gaps up open the trade using higher strike prices. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.

Why we recommend it:
This is basically a technical play on Regeneron Pharmaceuticals, Inc. (NasdaqGS: REGN). As seen in the chart below, Regeneron stock is flashing a candlestick bearish reversal sign and as noted the stock usually turns down when it reaches the current resistance level established after the price crashed in the middle of March. Also highlighted is the strength indicator starting to turn bearish while momentum is waning. It is a high probability that Regeneron Pharmaceuticals, Inc. stock will remain below the target for another week based on recent price behavior and technical chart signals.

REGN Chart 06052014

52-Week High: $352.49
52-Week Low: $206.30
Average Volume (3 month): 1,010,360

P.S. Use discount code GCEMO2 for a $1 subscription to Easy Money Options Income http://www.theoptionplayer.com/premium-services/

Trackbacks

  1. […] made money betting the price would decline (which it has). Click this link for the initial article http://www.theoptionplayer.com/regeneron-pharmaceuticals-regn-weekly-trade/ Our technical indicators signaled the ¬†downtrend would continue and we set up a similar successful […]

  2. […] Why we recommend it: Last week we published an identical (NasdaqGM: REGN) trade that was profitable. The plan is to let the previous position expire worthless and use the same setup to execute a similar trade for next week’s expiration. Another option is to “roll the position” by closing out the current trade before executing the next one. The market analysis used to define the strategy for the previous trade is still valid. Click this link for the previous article http://www.theoptionplayer.com/regeneron-pharmaceuticals-regn-weekly-trade/ […]

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