GILD Short Put — Dec 18, 2026
Trade Setup
Current Stock Price
$200.00
Entry Price
$200.00
Target Price
$100.00
Stop Loss
$400.00
Expiration
Dec 18, 2026
Suggested Contracts
1
Strike Details
Sell 140P
Risk / Reward
Max Loss
$13800.00
Max Profit
$200.00
Analysis
GILD (Gilead Sciences, Inc. - Common Stock) presents a short put opportunity with very elevated implied volatility. IV Rank 87. IV 3736.0% trades 978.0pp above 30-day HV (2758.0%). This setup favors net premium sellers.
Sell the $140 put for $2.00 credit. Naked single-leg exposure; collect premium from time decay if GILD stays above the strike. Underlying ~$148.00, 53 DTE. Max profit $200 per contract, max loss $13800, 1.4% return on risk, 84% POP. Breakeven at $138.00.
Management: take profit at ~50% of max profit ($100). Cut at 2x credit ($400 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: GILD @ ~$148.00 Expiration: Dec 18, 2026 (53 DTE) Net credit (entry): ~$200.00 per spread Legs:
- Sell GILD Dec 18, 2026 $140 Put (delta -0.16, mid $2.00)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~10.0% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($100). Cut loss if position reaches 2x credit received ($400 loss). Roll if tested with > 14 DTE remaining.