• Chart of the Day: Bristol-Myers Squibb Company (BMY)

    by  • July 24, 2013 2:57 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Bristol-Myers Squibb Company (BMY),  a biopharmaceutical company, which discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products that help patients prevail over serious diseases worldwide.

    Ticker:  Bristol-Myers Squibb Company (BMY)

    What I Am Looking At:

    • Reports earnings tomorrow morning on July 25th before the market opens, conference call at 10:30 am
    • BMY currently outperforming the S&P 500 Index, up more than 37 percent year-to-date
    • Last spring shares successfully surpassed the half all-time high at $39.62
    • Shares remain range-bound in a symmetrical triangle formation
    • Average historical Earnings move is 1.5 percent
    • RSI oversold and remains in a bullish mode
    • The open interest put/call ratio stands at 0.78 indicating more than 1.3 calls remain open for every put in the front 3 months
    • This ratio ranks in the 30th percentile of all readings taken during the past year, an indication of strong optimism heading into earnings
    • Peak call open interest in the August series resides at the 47-strike, potential roadblock for shares
    • The 10-day buy-to-open call/put ratio is also at an extreme reading of 11, indicating a strong preference for call buying versus put buying
    •  13 out of 19 analysts rate the shares a “hold” or worse
    • Short interest has decreased by more than 20 percent during the past month and represents 1.06 percent of the float

    Strategy:  Possible pre-earnings straddle purchase




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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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