DailyPlay – Opening Trade (BMY) – October 15, 2024

BMY Bullish Opening Trade Signal

Investment Rationale

Bristol-Myers Squibb Co. (BMY) recently broke out above its trading range with strong momentum, outperforming the S&P 500 and presenting a promising upside toward our $60 target. The stock has strengthened by turning former resistance levels into support. We view the recent selloff as a compelling buying opportunity, as BMY currently trades at a significant discount to its peers. Emerging from a period of net losses, BMY is expected to return to profitability by 2025, positioning the stock for further gains and bringing it more in line with its industry. With the upcoming earnings announcement before the open on October 31, 2024, we will factor this event into our strategy selection.

BMY – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 5 BMY Nov 15 $50 Calls @ $3.75 Debit per Contract.

Total Risk: This trade has a max risk of $1,875 (5 Contracts x $375) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $375 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 7/10

OptionsPlay Score: 77

Stop Loss: @ $1.88 (50% loss of premium)

View BMY Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View BMY Trade