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, sharply rose off the March low, topping in May. It pulled back from there and settled into a rising channel. It has been bouncing around between the 50% and 78.6% retracement of the pandemic drop at first but now between the 61.8% and 88.6% retracements. Since the end of January, it has found resistance just under that 78.6% level. It is back there again now with the Bollinger Bands® opening higher.

The RSI is rising into the bullish zone with the MACD rising and positive. There is resistance at 63 and 63.75 then 65 and 66.75. Support lower comes at 62 and 60.75 before 59.80 and 59.30. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 3.13% and begins trading ex-dividend March 31st. The company is expected to report earnings next on April 29th.

The April options chain shows the largest open interest at the 57.50 strike on the put side and twice as big at the 65 call strike. The April 30 Expiry options are just getting started and have low open interest other than the 66 calls. the May chain is also light. The June options show open interest building from 65 to a peak at 55 on the put side and peaking at 62.50 on the call side and tailing higher.

Bristol-Myers Squibb, Ticker: $BMY

Trade Idea 1: Buy the stock on a move over 63 with a stop at 61.

Trade Idea 2: Buy the stock on a move over 63 and add a April 30 Expiry 61/60 Put Spread ($1.12) while selling the June 67.50 Calls (98 cents).

Trade Idea 3: Buy the April/May 65 Call Calendar ($1.05).

Trade Idea 4: Buy the June 57.50/65/70 Call Spread Risk Reversal (33 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 March Quad Witching in the books, sees equity markets continuing to show signs of strain.

Elsewhere look for Gold to continue its pullback while Crude Oil pulls back in its uptrend. The US Dollar Index is on the verge of a reversal to the upside while US Treasuries continue to move lower. The Shanghai Composite looks to be on the edge of a reversal lower while Emerging Markets pullback in their uptrend.

The Volatility Index looks to remain low making the path easier for equity markets to the upside. Their charts however are showing signs of fatigue on the shorter timeframe, with the QQQ the weakest. On the longer timeframe both the SPY and the IWM remain strong but in a pause with the QQQ consolidating over support after a small pullback. 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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