Thanks to all the posters on the this board!!
I was long BMY Oct 32 & 33 calls.
Stop loss got hit, took me out at a nice profit.
73% on the 32's
90% on the 33's
I'm looking at getting back into the Oct 33 calls @ .80
Do you guys think there is still time to profit before the EX-Div?
EX-Div is Oct 5 for BMY, correct?
Looking at the last 13 quarters, and the change between EX-5 days (today), and EX-1 day: Eleven qtrs (85%) showed an average increase of $0.52 and two qtrs (15%) fell an average of $0.13. Adding +/- averages to today's close gives a range 34.18 - 33.53. Reasonable up odds (85%), but global headwinds don't help.
The charts for the past couple of years show that there is normally a quick drop in price right around this time before BMY resumes its run into ex-div. History doesn't always repeat itself, but it is probably a good bet that it will head back up through Monday or Tuesday.
In June it dropped from 35.63 on 6/22 to 34.13 on 6/22. On 7/2 it closed at 36.05.
But an even more important data point supporting a big price increase is that I DID NOT pull the trigger and buy more calls today. ;-)
Wish I sold yesterday and bought back today. I had a feeling we would see a retraction...
To answer your question, I think it will go up into expiration. The ex date is Oct 3, which means you need to exit your options on Oct 2 if you don't want them impacted by the dividend.