Bristol-Myers Squibb Dip Doesn't Deter Option Bulls

April calls are popular among Bristol-Myers Squibb Co (BMY) options traders

Digital Content Group
Apr 13, 2015 at 1:54 PM
facebook X logo linkedin


Since hitting a 14-year high $69.20 on March 20, Bristol-Myers Squibb Co (NYSE:BMY) has dropped 7%, recently consolidating above its 60-day moving average. Today, the shares have seen both sides of breakeven, but were 0.5% lower at $64.34 at last glance. Options bulls aren't paying much mind to today's price action, with calls crossing at almost triple the normal intraday pace.

Daily Chart of BMY since January 2015

BMY's three most popular contracts are in the April series, meaning they expire this Friday evening. Specifically, the top strikes are the 65, 65.50, and 66.50 calls, and all three appear to be seeing buy-to-open action, as speculators expect the shares to bounce back from today's dip to topple the respective strikes by week's end.

This call buying is just more of the same from BMY's options traders. Looking at data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 4.82 is only 2 percentage points from an annual bullish extreme.

By contrast, the analyst community isn't so sure of Bristol-Myers Squibb Co (NYSE:BMY). While eight brokerage firms say the equity is a "strong buy," eight others deem it a "hold" or worse. Plus, BMY's average 12-month price target of $65.90 sits in-line with current trading levels.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI