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