I first recommended Gilead Sciences (GILD) back on Nov. 19, when the stock was trading at $37.50 after a gap higher. That move established a bull trend that only recently has been subject to profit-taking.
GILD is up 60% from our initial buy-point. Investors who bought in November should protect their positions by writing calls or buying puts. Any weakness in the stock that results in a pullback to its 50-day moving average — around $55 — should be used to buy new shares. My long-term target for Gilead is $70.