American Capital Agency Corp. Message Board
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OT: BMY
Ever since the dividend BMY has shot straight up, almost $3. This is obviously partially due to BMY trading at a low range before the dividend, fiscal cliff issue being resolved, and today's earnings report.
I'm wondering if this week would be a good week to look at the February puts, and when the best time might be to initiate a position. BMY has consistently sold off into its range prior to the dividend run, and BMY is approaching its 52 week high.
Currently the $35 puts are going for 0.15 which could be a solid risk vs reward. Thoughts?-
BMY holding up in the bad market. Its time to ditch puts and move on,
- 1 Reply to ovicp
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Shorties miscalculated badly this go round, and it is costing them. Just broke through 37.
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I still like the prediction and have put my money down on the prediction. I don't see anything that has fundimentally changed in BMY. BMY is overbought and has never been over $35 for over two weeks in a row in the past year. All it takes is one piece of semi bad news in the Pharma stocks to cause BMY to drop $1 in a day or two. If FEB36 puts don't work, I will double down on MAR36 puts then finally sell around Mar 1 and switch to APR calls.
Sentiment: Strong Sell
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Puts are a bust.
- 1 Reply to ovicp
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I got a double riding this up into earnings,should have sold half and let it ride,would have doubled again.The big boys will take profits at some point,the question is when..
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I think this is headed to 38. This may be one cycle the shorts will have to eat one for the team.
- 1 Reply to james_reversal
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The Feb puts got taken out, and now the March puts are about to be taken out. A few badly-wounded shorties, for sure.
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Not a bad gamble. If BMY goes to $34 by Feb opex,
Buy 200 Feb BMY $35 puts @ 0.15
Cost: $3,000
BMY $34 @ OPEX:
$35 puts @ $1
200 x $1 = $20,000
less cost $3,000
profit: $17,000
%return based on maximum risk = 567% -
Haha I should have jumped the gun right away at those prices. I ended up paying an extra 0.14 (0.68 instead of 0.54) for the 36 puts. There is no way this stays above 35 for the rest of this quarter.
- 3 Replies to fit4life16
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Bought Feb 33 calls in late Dec for 0.31, sold about a week later when my money tripled. Calls are now worth $3.90.
Who knew..... -
Hope you didn't bet a bundle on the "prediction"
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Hey Fit,
Thanks for the heads up!! Save some powder as today:
""Bristol-Myers Squibb Company reported adjusted net income of 47 cents per share. By that measure, the company beat the mean analyst estimate of $0.43. It beat the average revenue estimate of $4.12 billion."
But...I still made an initial entry with your Feb36Puts Long @ .47
Good luck!!
DocReits
BTW, I have studied at length the historical cycles of BMY and have found Feb 14th(mid Feb) as the low of the Q. Here's hoping...;-)
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