BMY trade ideas
BMY appraoching resistance, potential drop! BMY is approaching our first resistance at 52.39 (horizontal swing high resistance, 100%, 61.8% fiboancci extension, 76.4%, 50% Fibonacci retracement) where a strong drop might occur below this level pushing price down to our major support at 48.35 (horizontal overlap support, 50% Fiboancci retracement).
Stochastic (55,5,3) is also approaching resistance where we might see a corresponding drop in price.
Short on Bristol MeyersABC correction inside a channel.
Shadowed zone
RSI also in channel
Volume on the break of resistance.
Triangle formation on week interval too just broken
If the double top made on last 20 years is correct, the projection will be absolute bankruptcy, by far... But, only if overpass the last support (aprox 18).
TRADE IDEA: BMY MARCH/APRIL 45/52.5 UPWARD CALL DIAGONALMetrics:
Max Loss On Setup: $443/contract
Max Profit On Setup: $307/contract; $153/contract at 50% max for 34.5% ROC
Break Even on Setup: 49.43 versus 50.18 spot
Debit Paid to Spread Width Ratio: 59.1%
Theta: 1.22
Delta: 31.54
Notes: With earnings on Thursday before market open and the underlying at the low end of its 52-week range, I'm looking at taking a bullish assumption directional shot without putting a ton of risk on the line to do it (which is why, in part, I'm going March/April instead of my standard split month; longer dated back months cost more, since you'll need to widen out to get a favorable break even and/or a decent debit paid to spread width ratio). That being said, a lot of these look sexier during off hours than when New York opens, so keep that in mind. The setup, after all, is currently bid 4.12/mid 4.43/ask 4.74 (off hours), which is awfully wide ... . The natural alternative is to just short put at the March 45 (paying 1.10 at the mid), but that'll tie up around 8.75 in buying power on margin, with a return on capital of 6.3% at 50% max and invoke a full notional in cash secured of 43.89. This is basically why I like to go defined with a lot of stuff that I'm not interested in buying and holding -- better return on cap, less buying power deployed, similar or better gross profit metrics, particularly in small cash secured accounts where you haven't got a ton of cash sloshing around to do a short put/acquire/cover cycle.
BMY approaching resistance, potetial drop! BMY is approaching our first resistance at 52.39(horizontal swing high resistance, 100% fiboancci extension, 76.4%, 38.2% Fibonacci retracement) where a strong drop might occur below this level pushing price down to our major support at 48.35 (horizontal overlap support, 50% Fibonacci retracement).
Stochastic (55,5,3) is also approaching resistance where we might see a corresponding drop in price.
HISTORY REPEATS ITSELF: SHORT BMYBMY is showing erie similarities of its last major cycle, and it appears massive downside is on the horizon. Decreasing RSI, strong support and resistance and the exact same chart pattern are more than enough to show BMY is likely headed down at least 20% over the next few months.
Sizable downside in the overall market over the next few months will likely add to the selling pressure. Price target is $32 by Q4 2019.
BMY traling stop kik me outWrite sometning about your psyhology thinking before trade? it a cool sunday
Describe the trade. What you see? price will rise and go to the target
in raelity I rise the trailing stop and price kik me out
I don t want to seat on my hands when price goes up, I should move my trailg stop. what should I consider is that I should move the trailin stops wiht the pull backs not with a price as I do.
BMY Jul 20th $55 CallLooking to hold my Jul 20th $55 Calls bought back on 6/18 at 53.95 (or $0.80/contract). It's held the trend line of ~+20% so far (+2% based on stock price). If this continues until expiration, the lower trend line should yield ~45% at a close of $56.15 (+4% based on stock price), whereas the upper trend line that recently took shape could yield up to ~420% (8% based on stock price). Anything in between is obviously a win as well, just looking to maintain the lower line and sell on any large moves higher.
Buying shares is also an option, I'm just choosing to leverage my return, but will exit on a close below the lower line.
Bristol-Myers Squibb looks ready to bounce After a month of sharp sell-off, we're looking at a red 9 on the TD sequential indicator, the RSI is oversold, and we're sitting at a previous support level. I think we can safely expect at least a dead cat bounce, if not a reversal. Keep watch, do your own research. good luck
