Bearish Bet on Pharma Stock Doubled Investors' Money

There were signs of chart resistance at the time of our BMY put recommendation

Digital Content Manager
Sep 18, 2023 at 2:32 PM
facebook X logo linkedin


Subscribers to Schaeffer's Leverage Trader service more than doubled their investment with our Bristol-Myers Squibb Co (NYSE:BMY) September 63 put recommendation, all in in just two weeks. Below, we will unpack how this trade ultimately played out, and dig into the reasoning behind this bearish bet on the drugmaker.

At the time of our recommendation on Sept. 5, the declining 50-day moving average had just rejected the shares. The security was also underperforming compared to its pharmaceutical industry peers, down 14% for the year, while its 14-day relative strength index (RSI) turned over from a brief "overbought" condition.

BMY 50 Day

Meanwhile, short interest had more than tripled in the most recent two-week reporting period, with bears seemingly providing major headwinds. BMY also boasted affordable premiums, per its Schaeffer's Volatility Index (SVI) of 16% that sat higher than only 4% of annual readings. In other words, traders were pricing in low volatility expectations.

While Bristol-Myers Squibb stock attempted a small rally after our recommendation, the aforementioned 50-day trendline capped this upward movement. The security then hit a Sept. 15, one-year low of $58.86, which prompted us to exit the position, allowing subscribers to collect a 107% profit in just 10 days.

 

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