BMY.USD trade ideas
BMY Is starting a bull moveHey everyone,
Another biomed related post today by request.
BMY has double-bottomed as bulls grab a little control today on price.
The stock has respected the BBands and is looking to move to the neutral region.
The RSI teased in the oversold area, and price has responded with one of the two strong bull movements in the past four weeks as far as price movement goes.
Price will struggle to break the $48.31 resistance that the massive bull volume failed to break on the 29th.
We want to look for increasing bull volume as price recovers after hitting a low.
If bull volume recovers with the next successive days, look at the $48.31 target for the first movement, with the $54 mark if price breaks through for the second movement.
If bear volume trends or increasing in the next few days below the 45.15 support, the stock could break lower forming new lows for the year.
Keep a tight stop loss in the meantime at the lower $45.15 support and long for the 48.31 and eventually the 54.44 if price starts to trend up with volume or if it ventures beyond the restraints of the BBands.
-Block
$BMY Inside BoxLooks like a contender for a Bullish Spread.
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$BMY Bristol Myers ready for a BULLISH moveBristol-Myers Squibb upgraded to Overweight with a $55 (17% upside) price target at Barclays. Shares up 1% premarket.
Post earnings BMY has had some nice price action, investors liked what the heard from the earnings report and the analysts have started to upgrade the stock as of today. Sentiment in the Pharma sector has been horrendous for months, so maybe a turnaround is on the cards. The price has found a bottom and the indicators have also put a strong base in. We think this is a very safe long with a good RR opportunity.
Company Description
Bristol-Myers Squibb Co. engages in the discovery, development, licensing, manufacture, marketing, distribution, and sale of biopharmaceutical products. It includes chemically-synthesized drugs or small molecules and products produced from biological processes called biologics
Regular Bullish Divergence for BMY stockRegular Bullish Divergence for BMY stock. Have we reached the bottom?
BMY is approaching support, potential bounce! BMY is approaching our first support at 47.85 where we might see a bounce in price to our resistance at 51.12. Stochastic is also approaching support where we might see a corresponding bounce in price.
May 17 - BMYBMY 17-May-19
IV30:41.7, IVR:99 (Elevated), IV30 MA20: 35.4
Bear Call Spread
+0.19D Long 1 Call: 57.5 Strike @ $0.80
-0.28D Short 1 Call: 55 Strike @ $1.29
-0.09D Credit: $0.49
Bottom BuildingThe bottom is building since the beginning of February already. Next move should be up.
BMY approaching support, potential bounce! BMY is approaching our first support where we might see a bounce in price to our first resistance level.
Stochastic is also approaching support.
BMY appraoching resistance, potential drop! BMY is approaching our first resistance at 54.09 (horizontal swing high resistance, 50% Fibonacci retracement, 100% fibonacci extension) where a strong drop might occur below this level pushing price down to our major support at 50.25 (61.8% fibonacci retraecement, horizontal swing low support).
Stochastic (34,5,3) is also approaching resistance where we might see a corresponding drop in price.
Apr 18 - BMYApr-18 BMY
IV30:38.8, IVR:98 (Elevated)
+0.21D Long 1 Call: 60 Strike @ $0.88
-0.42D Short 1 Call: 55 Strike @ $2.09
-0.02D Long 1 Put: 40 Strike @ $0.06
+0.10D Short 1 Put: 45 Strike @ $0.37
-0.13D Credit: $1.52
PCR=26:74
BMY approaching resistance, potential drop!BMY is approaching our first resistance at 52.42(horizontal siwng high resistance, 61.8%, 100% fibonacci extension, 76.4%, 38.2% fibonacci retracement) where a strong drop might occur pushing price down to our major support at 48.35 (horizontal overlap support, 50% fibonacci retracement).
Stochastic (89,5,3) is also approaching resistance where we might see a corresponding drop in price.
TRADE IDEA: BMY APRIL 18TH 55 SHORT STRADDLEMETRICS:
Max Profit: $733/contract ($183 at 25% max; 16.7% Return on Cap On Margin)
Max Loss/Buying Power Effect: Undefined/~$1100 on margin
Break Evens: 47.67/62.33
Delta: 24.37
Theta: 5.11
Notes: I'm still feeling bullish, just not as bullish as I was at the beginning of the year -- hence the 24 long delta metric. From a price action perspective, low side break even and short straddle strikes line up nicely with "local low/highs" between 47 and 54. As with the other setups I worked (MAT, EA, See Posts Below), markets are showing wide in the off hours, so this might not be as attractive when markets open tomorrow, but it's nice to know that there are other possibilities on tap than playing CZR, RIG earnings for volatility contraction.
Other Obvious Setups:
April 18th 47 short put, 1.24 credit at the mid (.62 at 50% max), 45.76 break even, delta 24.37, theta 2.02.
April/June 45/55 upward call diagonal, 6.45 at the mid, break even of 51.45 versus 51.67 spot, debit paid to spread width ratio of 64.5%, max profit on setup of 3.55/1.78 at 50% max/27.5% return on capital. Markets are ghastly in the off hours for this: bid 5.06/mid 6.45/ask 7.85, so it'll have to be priced out during NY.
BMY is approaching resistance, potential drop! BMY is approaching our first resistance at 52.42 (horizontal swing high resistance, 61.8% , 100% Fibonacci extension , 38.2%, 76.4% fibonacci retracement ) where a strong drop might occur below this level to our first support at 48.25 (horizontal overlap support, 50% fibonacci retracement ).
Stochastic (34,5,3) is also approaching resistance and seeing a bearish divergence where we might see a corresponding drop in price.
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.
