Rolling Regeneron Pharmaceuticals (REGN)

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

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

Sell the June week-three expiration REGN $325 call for $1.20 (Thursday closing bid/ask mean)
AND
Buy the $330 call at .65 (Thursday bid/ask mean)

The difference between funds received and paid out is a $.55 per share credit which we keep if Regeneron Pharmaceuticals, Inc. stock closes below $325 on Friday June 20th 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:
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/

The updated chart below confirms (NasdaqGM: REGN) stock is continuing to trade range-bound. As noted, strength and momentum indicators remain flat and signal a near term neutral trend in the stock. Also the share price is held in check below a firm resistance level. There is a high probability Regeneron Pharmaceuticals, Inc. stock will remain below the target for another week based on recent price behavior and technical chart signals.

REGN Chart 06122014

52-Week High: $352.49
52-Week Low: $206.30
Average Volume (3 month): 923,028

 

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

The information presented here is for informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.

Trackbacks

  1. […] Why we recommend it: Regeneron Pharmaceuticals, shares (NasdaqGS: REGN) have been in a swoon the past week along with the healthcare sector in general. However, regular subscribers are aware that we have published a series of profitable trades on this stock for the month of June. Those who followed the trade suggestions 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 ┬ádowntrend would continue and we set up a similar successful trade. Click this link for the previous article http://www.theoptionplayer.com/rolling-regeneron-pharmaceuticals-regn/ […]

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