Buy Celgene (NSDQ: CELG) and Another Shot at March Call Options

By Linda McDonough • January 25, 2018

Buy Celgene (NSDQ: CELG)

Target: $160

Buy Up To: $112

Celgene’s been on a wild ride since I recommended the March call options on December 13. First, the company pre-announced its fourth-quarter earnings with revenue that some considered slightly disappointing.

Then the company made two large acquisitions, both expensive, but critical to its long-term growth. I’ve been waiting for investors to digest the news but like the company’s prospects here.

It is one of the few large drug companies with a balance sheet strong enough to support further acquisitions as well as a robust in-house research project. Earnings are growing and any “re-setting” of expectations has already happened.

The March 16, 2018 call on Celgene (NSDQ: CELG) with a strike price of $110 that I recommended in December is trading at a much lower price. Those interested in a new option position could consider buying those at $2.30 or lower. Symbol (CELG180316C110)

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Santo

01/25/18 ‐ 10:00am ET January 25, 2018 at 10:00am ET

Thanks Linda. I got in at $2.32. Surprised the after hours pop on earnings vanished at market open today. Hope it will bounce back. Has some time to go.

George McMillion

01/25/18 ‐ 10:17am ET January 25, 2018 at 10:17am ET

Just got in at $1.84.
Thank you.

Stanley

01/25/18 ‐ 10:44am ET January 25, 2018 at 10:44am ET

CELG filled for 1.92 @ Fidelity

Akano

01/25/18 ‐ 10:54am ET January 25, 2018 at 10:54am ET

CELG at $ 1.92 for 180316 for $110.00 call

Curtis C

01/25/18 ‐ 11:09am ET January 25, 2018 at 11:09am ET

Do we just hang on to the previous $110 Calls?

Linda McDonough

01/25/18 ‐ 11:21am ET January 25, 2018 at 11:21am ET

Yes Curtis, I am holding on to them. They obviously don’t have the same upside as buying them today but I do expect the stock to trade above the strike by a wide margin before expiration.
Best,
Linda

Curtis C

01/25/18 ‐ 12:22pm ET January 25, 2018 at 12:22pm ET

Thanks, Linda

Roger Dehring

01/25/18 ‐ 11:14am ET January 25, 2018 at 11:14am ET

Thanks for the idea, Linda,

Capped my profit potential, bought the 16-MAR 110/115 calls for a -$1.05 debit.

Chee L.

01/25/18 ‐ 11:27am ET January 25, 2018 at 11:27am ET

I like the target potential so am giving it more time to achieve plus reduce time decay by buying the 15 Jun 18 110 calls at $4.70. Thanks Linda.

Mike D

01/29/18 ‐ 11:26am ET January 29, 2018 at 11:26am ET

Bought CELG at 2.30

Tim Lewis

01/29/18 ‐ 1:52pm ET January 29, 2018 at 1:52pm ET

Hmm. CELG took a bit of a tumble today.. currently @ $102.99.. hoping it picks back up to anywhere over $105 by Friday (personal spread). The Mar16 110 Call is currently $2.10. Anybody know why the downgrade? Is it because the Chairman stepping down (8-K)?

Biotech Rick

02/15/18 ‐ 5:34pm ET February 15, 2018 at 5:34pm ET

I really took the “Nestea Plunge” when I bought 2045 @ 101.70 on 1-30. Couldn’t resist playing a chart spread to 106 on a cheap forward earnings stock, BUT that was before the nasty correction I couldn’t foresee. I signed up with PCA on Valentines Day and love Linda already. She likes the stock as much as I do. We’ll profit off this one easy.

OR

05/02/18 ‐ 10:59am ET May 2, 2018 at 10:59am ET

Hi Linda –

Did you have a recent recommendation on CELG? I searched but this was the post that came up from Jan? Thks!

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