How low do you think BMY will drop? It went Ex-Div already. I'm thinking of buying deep in the money June 2013 Calls around mid February 12-16, during it's swoon...I hope to see it drop to $32 and below. Anyone buying BMY puts in anticipation of a drop in pps?
Why do you all think it will drop?I've got more than a double in BMY calls I bought a month ago.It's been running up ever since it's new anti-clotting drug got approved in the US.I'm thinking of selling before earnings come out on Jan 25.I know it can't keep running up forever but what is the event that you see causing it to drop; earnings?
Eleven of the last 15 quarters have shown a price decline during the 30 trading days after BMY's EX date. The upcoming political problems with the debt ceiling would also be a negative factor. Possibly a big one. So call it a 75-80% bet in favor of a decline.
Thank you and others for bringing this pattern to my attention, I follow BMY but haven't traded it much. Anyway, after some DD I decided to try to buy a BMYFeb35put for $1.10, I will join you guys in this trade. Good luck to all
I look for $32, maybe a little less, by about Feb 15. This would have produced a profit in 73% of the last 15 quarters. However, this quarter did not follow the pattern in the two weeks before EX. I'm putting this down to the excitement over the fiscal cliff, and hoping for a regression to the mean (which seems to be occurring). At any rate I have bought a few Feb 34 puts, and intend to exchange them for longer term calls mid Feb.
Valentine's Day, last three years would have made you some money by April EX. It is uncanny how the middle of the month following the EX month, in almost every Q of the year, going back to 2009, would be the low of the Q. Doesn't take rocket science, right X?