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?
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
Not a bad gamble. If BMY goes to $34 by Feb opex,
Buy 200 Feb BMY $35 puts @ 0.15
BMY $34 @ OPEX:
$35 puts @ $1
200 x $1 = $20,000
less cost $3,000
%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.
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
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...;-)