Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 10, 2014  Fri 12:21 PM CT

BMY: SEE CHART GET CHAIN FIND STRATEGIES
Bristol-Myers Squibb has been running hard, and the bulls are getting greedy.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 30,000 February 57.50 calls for an average premium of $1.50. Some 22,000 January 52.50 calls were sold for $3.35 in volume below the previous open interest, so it appears that an existing long-call position was closed and rolled to a higher strike.

The investor recovered $2.87 million of his or her capital by making the adjustment and now has an additional month to profit from gains in the drug maker. The trader also increased the number of contracts in the position, which will boost leverage if the stock continues to rally. (See our Education section for more on how to manage trades more effectively with options.)

BMY is up 1.64 percent to $55.94 in afternoon trading, its highest price since 2001. The stock has been running in the last month after the company sold its stake in a diabetes-drug joint venture to AstraZeneca. It also reported strong earnings and positive data on a potential cancer drug in October.

Total option volume is quadruple the daily average so far today, with calls outnumbering puts by a bullish 9-to-1 ratio.
Share this article with your friends


Related Stories

BMY

Bristol-Myers bulls back for more

September 8, 2014

The pharmaceutical giant attracted bullish option activity for the second session in a row at the end of last week, ahead of management's presentation at a major industry conference today.

BMY

Bristol-Myers bulls looking for rally

September 5, 2014

The stock gapped lower on a big analyst downgrade in May but jumped with positive drug data in late June, and the company reported strong quarterly results one month later.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER