'Fast Money' Traders Weigh In On IBB And Gilead

On CNBC's "Fast Money," Tim Seymour spoke about a possible break out in iShares Nasdaq Biotechnology ETF IBB.

He said traders should be defensive in a high multiple environment and they're buying the ETF because in Amgen, Inc. AMGN they have an exciting pipeline and a great balance sheet. They have the same thing in Gilead Sciences, Inc. GILD although it has been dead money and Moderna Inc MRNA is a high growth company with a catalyst, said Seymour.

Guy Adami would be a buyer of IBB. He said it's not coincidental the stock topped out at $174.50 at the peak of the vaccine news. It held well $147.50 a few times since March, said Adami.

Tony Zhang noticed high options activity in Gilead. It normally averages 24,000 contracts and on Thursday 99,000 contracts were traded in the name. Around 75% of that volume was from the single trade as a trader rolled 17,500 contracts of the August $70 strike short synthetic stock position. The trade represents a short position of effectively 1.75 million shares or around $121 million in notional value, but Zhang doesn't think it's an outright short position. He thinks it's a hedge.