Gilead Science (GILD) is seeing activity by a trader looking to profit by selling puts to offset the purchase of calls for a bull risk reversal trade. Our systems show that the trader sold 4,500 Oct 45 puts for $.325 while selling the same amount of the Nov 42.50 contracts for $.70 and bought 4,500 of the Nov 47.50 calls for $1.80. By selling 2x the number of puts, the net debit for the trade is $.775.

Shares are showing weakness by being under the 50 and 20 SMA's. Prices are coiling on a weekly chart showing a pendant forming, which could cause a decent move into either direction.

So where the trade?