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Call Spread on JAZZ on 12/11/2013

Bullish Cup & Handle on JAZZJazz Pharmaceuticals (JAZZ) is a biopharmaceutical company.

The firm engages in the identification, development, and commercialization of pharmaceutical products for various medical needs in the United States, Europe, and other countries.

The company’s products include Xyrem for the treatment of cataplexy and excessive daytime sleepiness in patients with narcolepsy; Erwinaze to treat acute lymphoblastic leukemia; Prialt for the management of severe chronic pain; and FazaClo LD and FazaClo HD, which are orally disintegrating clozapine tablets for the resistant schizophrenia treatment. It also provides Luvox CR to treat obsessive compulsive disorder; Versacloz oral suspension; Caphosol to treat oral mucositis; Quadramet for the treatment of pain in patients whose cancer has spread to the bones; ProstaScint for imaging the extent and spread of prostate cancer; Niravam for the treatment of generalized anxiety and panic disorders; and Parcopa for the symptoms associated with idiopathic Parkinson’s disease treatment. In addition, the company offers Collatamp, a surgical implant impregnated with the antibiotic gentamicin; Fomepizole to treat ethylene glycol poisoning; Kidrolase for treating ALL, Leukaemic meningitis, and non-Hodgkin’s lymphoma; Xenazine to treat movement disorders associated with Huntington’s chorea and hemiballismus; and Custodiol, a ready to use solution used in organ transplantation.

Further, it develops Asparec, a pegylated recombinant Erwinia asparaginase that is in Phase I clinical trials for the treatment of patients with ALL with E. coli asparaginase hypersensitivity; and Leukotac, an anti-CD25 monoclonal antibody is in Phase III clinical trials for the treatment of steroid-refractory acute graft vs. host diseases. 

Shares are heading higher in a bullish "cup & handle" and higher share prices are expected for this stock.

52-Week Trading Range: $49.63 - $121.15

Entry Point: $116.71

 

Trade

  • Buy 1 January $115.00 Call at $8.00
  • Sell 1 January $120.00 Call at $5.50
  • For a net debit of $2.50

Profit/Loss Analysis

  • Breakeven at $117.50
  • Maximum profit is $250.00 at strike of $120.00
  • Maximum loss is ($250.00) at strike of $115.00

Closing Summary

  • Sold 1 January $115.00 Call at $11.50
  • Bought 1 January $120.00 Call at $7.50

Position closed on 12/20/2013 at price of $4.00 with a 60.00% gain in 8 days.

Updates

12/20/2013 9:34:30 AM

We are taking profits on JAZZ call spread trade.

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