4 Trade Ideas for Bristol-Myers Squibb: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Bristol-Myers Squibb, $BMY, comes into the week rounding up out of a pullback below the 100 day SMA. It has an RSI clinging to the lower edge of the bullish zone as it tries to rise higher with the MACD negative but curling to cross up to positive. There is resistance at 57.50 and 60 before 60.50 and 62. Support lower sits at 56 and 54.50 then 54. Short interest is low at 1.5%. The stock please the dividend with an annual yield of 4.42% and has traded ex dividend since April 2nd.

The company is expected to report earnings next July 30th. The June options chain has the biggest open interest at the 52.5 put strike then the 55 put. On the call side it is biggest by far at the 62.50 call strike. In the July chain open interest as biggest at the 52.50 put and on the call side at the 57.50 and 62.50 call strikes. Finally, in the August chain, open interest is just getting started and light on the put side.  On the call side it is biggest at the 60 strike.

Bristol-Myers Squibb, Ticker: $BMY

Trade Idea 1: Enter long on move over 57.25 with a stop at 55.25.

Trade Idea 2: Enter long on move over 57.25 and add a June 55 Put (98 cents) while selling an August 62.50 Call (99 cents).

Trade Idea 3: Buy the June/July 60 Call Calendar (65 cents) while selling the June 52.50 Put (35 cents).

Trade Idea 4: Buy the August 52.50/60/65 Call Spread Risk Reversal (11 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the May options expiration in the rearview mirror and heading into the last week before the long weekend and unofficial start of summer, equities continue to act strong, tacking on more new all-time highs but failing to close out the week at highs. This ends the streak of Friday all-time high closes at four.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in broad consolidation over $100/bbl near the top of the range. The US Dollar Index looks to continue to higher in broad consolidation while US Treasuries continue to test support and a possible continuation of their downtrend. The Shanghai Composite looks to continue a short term uptrend new 11 year highs while Emerging Markets digest the new highs in their uptrend.

The Volatility Index looks to continue in the normal zone removing all the pressure on equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 7th positive week for the SPY. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong but with overheated momentum starting to reset lower and price digesting to end the week. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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