Consider Bristol-Myers (BMY) After a Price Upgrade from Goldman Sachs
Goldman Sachs recently upgraded BMY to a ‘Conviction Buy’ and assigned a price target of $86. There have been some other recent upgrades which are discussed in this article - Bristol-Myers Squibb (NYSE:BMY) Upgraded to "Conviction-Buy" by The Goldman Sachs Group. Also check out the following article which outlines why investors may see value in BMY at current prices - 3 Cheap Dividend Stocks For High Total Returns.
____________ advertisment ______________
Could You Turn $100 into $47,350 (and KILL Verizon)?
Imagine turning $100 into $47k and taking down one of the country's most-hated industries at the same time! Thanks to a tiny tech company, Verizon could soon be DEAD and you could be much wealthier!
Click now for the shocking details (before it's too late).
______________________________________
Technicals
From a technical perspective, BMY has mostly traded in a broad range after a strong rally in the second quarter. The technicals show that the uptrend remains intact and with a confluence of support nearby, this might be a good time to consider an entry. Support for BMY comes from the lower line of a rising trend channel that started in June. The 200-Day moving average falls near the lower channel line to create a strong area of support for the stock.
*source Tradingview.com
If you agree there's further upside ahead for BMY, consider this trade which relies on the stock remaining above $61 through the expiration in five weeks.
Buy To Open BMY 29JAN21 58 Puts (BMY210129P58)
Sell To Open BMY 29JAN21 61 Puts (BMY210129P61) for a credit of $1.15 (selling a vertical)
This credit is $0.02 less than the mid-point of the option spread when BMY was trading near $61. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will be only $1.30 per spread. Each spread would then yield $113.70. This reduces your buying power by $300 and makes your investment $186.30 ($300 – $113.70). If BMY closes at any price above $61 on January 29, both options will expire worthless, and your return on the spread would be 61% ($113.70 / $186.30), or 696% annualized.
____________ advertisment ______________
Morgan Stanley says lithium supply needs to jump 10x in four years.
The problem: While there's plenty of lithium, there are no new mines. But, new research reveals a young company with a massive lithium property in the heart of the Lithium Triangle.
You can get your free report here.
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.
As with all investments, you should only make option trades with money that you can truly afford to lose.
Happy trading,
Terry
____________ advertisment ______________
A once-small company has a huge new lithium property.
It's one of three great ways to find true investing success as a supply crisis erupts. A new research report has the winning investment formula.
Get your lithium-success report here.
______________________________________
Any questions? Email Colin@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Colin@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you up for our Premium Service package ($97 monthly subscription). You get 1 month of services without paying us one penny. I look forward to having you on board, and to prospering with you.
Terry
|