REGN – Ready to Bounce?

After this last healthy decline in Regeneron (REGN, $287.81, up $4), I have to consider the 1/24 low, key and pivotal.  Since I like that low, I have looked at this most recent pullback to it as an opportunity for another buy side entry using options with the risk defined below the 273 area.

If REGN does continue to hold up, the initial upside target off the January lows shows us upside potential at the $314.45 area.

cb 2 4 regn (2)

The risk reward is good here.  Since the overall market is still a little funky, I would either consider buying a vertical call spread or maybe selling a put credit spread with limited risk … different breakeven points but vertical call spread probably better gain potential.  I will consider myself wrong if the $273 area is taken out instead.