Health care/ pharma is not a candidate for credit spreads. They are open to headlines on a daily basis with regards to FDA news etc.So I don't trade them much. As for particular stocks: Yesterday I was asked if we should do a credit put spread on GILD since it was -13%. I said no: 1) no credit spreads ever on pharma. and 2) a move of this size (highest volume in at least 2years) deserved respect. Meaning I step back and see what happens. I also mentioned that Gild has NONE of its analysts rating it anything negative. So they are at risk for downgrades. Minutes later BAC downgraded them. Today GILD -5%. I said that this knife could have a 2inch handle and 12 in blade. Gilead today has the opportunity to show that it rejects the lower end of the candle showing signs of slowing down the drop rate. But I still don't rush in.

The sector IBB itself with today's candle shows a broken trend where 275 is not out of the question.

Teva seemed on the verge of a breakout yesterday. Today a nasty candle erases the threat of that breakout. In general, I can't go long these levels. I would be a weak hand. If so compelled one should only do it via debit call spreads and with a little time to be proven right.