BMY – Bristol-Myers Squibb Co. – Near-term bullish options activity on the biopharmaceutical company today indicates some investors are confident that Bristol-Myers Squibb’s shares are likely to trade above $24.00 through July expiration. BMY’s shares are currently up 0.75% to trade at $25.43 just after 1:50 pm (ET). Optimistic traders sold approximately 4,200 puts at the July $24 strike to pocket an average premium of $0.27 per contract. Put sellers keep the full premium received today as long as BMY’s shares trade above $24.00 through expiration day next month. Investors short the put options are apparently happy to have shares of the underlying stock put to them at an effective price of $23.73 should the puts land in-the-money at expiration. Traders selling the put options start to incur losses if the biopharmaceutical firm’s shares decline 6.7% from the current price of $25.43 to trade under $23.73 by expiration day in August.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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