BMY is moving higher today
Bristol-Myers Squibb Co (NYSE:BMY) is up 3.2% at $51.71, after the U.S. Food & Drug Administration (FDA) approved the pharma name's schizophrenia treatment, Cobenfy. This marks the first new treatment for the mental health condition in 70 years.
Today's rise has BMY breaking into positive territory for 2024, and above pressure at the $51 level, which has been caping rallies since late July. Year over year, the equity is still down 11%.
Options bulls have been quick to chime in after the news. So far, 47,000 calls have been traded, which is six times the volume typically seen at this point and quadruple the number of puts traded. The January 2025 50-strike call is the most active contract, followed by the March 55 call, with new positions being opened at the latter.
Bristol-Myers Squibb stock tends to exceed options traders' volatility expectations. This is per its Schaeffer's Volatility Scorecard (SVS), which ranks at a 94 out of 100.