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, rose from a bottom in July last year, and continued to a top in January. It fell back to retest the October 2018 high and bounced but could not make a new high afterwards. It fell back from there and continued below the 2018 high this time, not finding support until mid-March. At that point it had retraced nearly 88.6% of the full move higher. It has been moving higher since and crossed the 200 day SMA last week. It ended the week at the 50% retracement level and what has been prior support.

The RSI leveling at the mid line as price stalls, with the MACD rising but still negative. There is resistance at 56 and 58.75 then 61 and from 62.75 to 63.50 then 65.50 and 67.50 before 68.35. Support lower comes at 54 and 52 then 50 and 47.50. Short interest is low at 2%. The stock pays a dividend with an annual yield of 3.24% and began trading ex-dividend on April 2nd. The company is expected to report earnings next on May 7th.

The April options chain shows the biggest open interest at the 57.50 strike on the put side and then at 50 with a third spike at 55. On the call side it is smaller and spread from 50 to 60. May 8 Expiry options are just getting started but have a chunk of open interest building at the 60 call. May monthly options show the largest open interest at the 52.50 put and then declining up to 65. On the call side it is biggest at 60 and declines up to 70.

Bristol-Myers Squibb, Ticker: $BMY

Trade Idea 1: Buy the stock on a move over 56 with a stop at 53.50.

Trade Idea 2: Buy the stock on a move over 56 and add an April 55/52.50 Put Spread ($1.60) while selling the April 57.50 Call (70 cents).

Trade Idea 3: Buy the April/May 60 Call Calendar ($1.10) and sell the May 49 Put ($1.09).

Trade Idea 4: Buy the May 49/57.50/60 Call Spread Risk Reversal for free.

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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 in a week with record unemployment filings and a non-farm payroll report that ended a 10 year streak of adding jobs, saw equity markets show resilience on the mid to large cap side, not so much for the small caps.

Elsewhere looks for Gold to continue to move higher while Crude Oil reverses to the upside to join it. The US Dollar Index is also moving to the upside while US Treasuries push back towards all-time highs. The Shanghai Composite looks to consolidate in a broad range while Emerging Markets head lower.

The Volatility Index is settling back lower but remains at very high levels, keeping the pressure on equity markets. Their charts all reversed from the bounce last week with the IWM showing the weakest performance, renewing the downtrend. The SPY and QQQ moved lower but both had their narrowest range since before the drop began in mid-February, perhaps showing signs of growing clarity. 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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