4 Trade Ideas for Bristol Myers Squibb: Bonus Idea

• Posted by Greg Harmon
• on March 24th, 2025

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

Bristol Myers Squibb, $BMY, comes into the week poking over resistance. The Bollinger Bands® are squeezing, often a precursor to a move. The RSI is rising in the bullish zone with the MACD level after a pullback and positive. There is resistance at 63 and 64.50 then 66.50 and 68 before 69 and 71. Support lower is at 58.75 and 57 then 55. Short interest is low at 1.5%. The stock pays a dividend with an annual yield of 4.06% and will start trading ex-dividend on April 4th.

The company is expected to report earnings next on April 24th. The April options chain shows biggest open interest at the 55 strike on the put side then 50. On the call side it is biggest at 62.50 then 60 and 65. In the May chain, open interest is biggest at the 57.50 and 55 put strikes and is spread from 60 to 67.50, biggest at 62.50, on the call side. Finally, the June chain sees open interest spread from 60 to 35 on the put side, biggest at 45. On the call side it is spread from 57.50 to 67.50, biggest at both ends.

Bristol Myers Squibb, Ticker: $BMY

Trade Idea 1: Buy the stock on a move over 61.50 with a stop at 58.75.

Trade Idea 2: Buy the stock on a move over 61.50 and add an April 60/55 Put Spread ($1.15) while selling the June 67.50 Call (94 cents).

Trade Idea 3: Buy the April/May 65 Call Calendar ($1.05) while selling the May 55 Put (91 cents).

Trade Idea 4: Buy the June 55/62.50/67.50 Call Spread Risk Reversal (75 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 FOMC meeting and options expiration in the books, saw equity markets shifted to stability after 3 weeks of downward price action.

Elsewhere look for Gold to continue its ascent into space while Crude Oil consolidates at the bottom of a broad range. The US Dollar Index looks to have found support in its drift lower while US Treasuries look weaker in their consolidation. The Shanghai Composite looks to digest the recent move higher while Emerging Markets consolidate in a narrow range.

The Volatility Index looks to remain slightly elevated, putting some pressure on equity markets. Their charts remain at risk of more downside, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY may be stabilizing as they hold the bounce this week. The IWM is a bit weaker. 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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