Bristol-Myers gets vote of confidence
Bristol-Myers Squibb hit an 11-year high yesterday, and one trader apparently thinks that any downside will be limited for the rest of the year.
optionMONSTER systems detected the sale of 5,000 January 41 puts for the bid price of $1.56 yesterday. The volume was almost 10 times the strike's previous open interest, so this is clearly a new position.
The put selling is s bet that BMY will hold above $41 through the end of 2013. The trader takes on the risk of having to buy shares if they are below that price. (See our Education section)
BMY rose 5.31 percent yesterday to close at $46.40. The drug maker peaked at $47.48 earlier in the session, its highest price since March 2002, after Citigroup raised its price target on the name to $55 from $33. Shares were below $40 at the start of the month and down at support at $32 at the end of 2012.
Total option volume in BMY was just shy of 88,000 contracts, more than 7 times its daily average.
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