4 Trade Ideas for Bristol Myers Squibb: Bonus Idea

• Posted by Greg Harmon
• on September 3rd, 2024

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

Bristol Myers Squibb, $BMY, comes into the week at resistance. The Bollinger Bands® have squeezed in and are now opening higher. The RSI is rising in the bullish zone with the MACD positive and curling to cross up. There is resistance at 50.50 and 51.50 then 52.50 and 54.50 before 56 and 57.50. Support lower sits at 49.50 and 47.50 then 46.50. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 4.80% and has traded ex-dividend since July 5th.

The company is expected to report earnings next on October 31st. The September options chain shows open interest building from 50 to a peak at 47 on the put side. On the call side it is biggest at 50 then 46. The October chain has biggest open interest at 50 and 43 on the put side while it is biggest at 55 on the call side. In the November chain, covering earnings, the 38 and then 46 put strikes have biggest open interest. On the call side it is biggest at 49 and tails to 57.50.

Bristol Myers Squibb, Ticker: $BMY

Trade Idea 1: Buy the stock on a move over 50.50 with a stop at 48.50.

Trade Idea 2: Buy the stock on a move over 50.50 and add an October 48/45 Put Spread (70 cents) while selling the November 57.50 Calls (40 cents).

Trade Idea 3: Buy the September/November 52.50 Call Calendar ($1.20) while selling the October 46 Put (45 cents).

Trade Idea 4: Buy the October 45/52.50/55 Call Spread Risk Reversal (19 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 heading into the unofficial end of summer and with August in the books, saw equity markets show a preference for some rest after the 3 week move higher.

Elsewhere look for Gold to continue its uptrend while Crude Oil consolidates in a tightening range. The US Dollar Index continues to bounce to the upside while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue the downtrend while Emerging Markets consolidate over support in a possible start of a new uptrend.

The Volatility Index looks to remain low and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe the week long consolidation left the SPY with just 2 hours to rocket to just shy of a new all-time high close while the QQQ and the IWM ended near the high of the week. All are prepped to start September stronger. 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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