Red-Hot Bristol-Myers Squibb Stock Has Plenty of Room to Run

BMY tends to outperform after earnings reports

Apr 6, 2022 at 2:01 PM
facebook X logo linkedin


The shares of Bristol-Myers Squibb Co (NYSE:BMY) have been on a steady uptrend over the last several months, while boasting low implied volatility (IV). What’s more, the stock stands above the round $150 billion market-cap level, and last month broke out above chart resistance. With earnings results due out in late April, and the fact that BMY stands above all prior earnings closes in recent history after its plans to buy back 10% of its outstanding shares, now seems like a perfect opportunity to bet on the stock’s next move higher.
 
There is still plenty of room for upgrades among the brokerage bunch, which could lead to double-digit gains on a year-to-date and year-over-year basis. More specifically, six of the 13 analysts in question still call Bristol-Myers Squibb stock a tepid “hold.” There has also been a sharp rise in short interest, which is up roughly 105% in 2022. Should some of that pessimism start to unwind, BMY may surge higher still.
 
It’s also worth noting the equity sports attractively priced premiums right now. This is per BMY’s Schaeffer's Volatility Index (SVI) of 17%, which sits in the low 19th percentile of its annual range. In other words, options players are pricing in relatively low volatility expectations at the moment.
 
Our recommended July call has a leverage ratio of 9.8, and will double in a 9.6% pop in the underlying shares.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this BMY commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 

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