DailyPlay – Opening Trade (BMY) – December 4 2023

BMY Bullish Opening Trade Signal

View BMY Trade

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 14 Contracts Jan 19th $50/$55 Call Vertical Spreads @ $1.44 Debit per contract.

Total Risk: This trade has a max risk of $2,016 (14 Contracts x $144) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $144 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is

1M/6M Trends: Bearish/Bearish

Relative Strength: 2/10

OptionsPlay Score: 121

Stop Loss: @ $0.72 Credit. (50% loss on premium paid)

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 Friday’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. 

Investment Rationale

Our BMY trade has started to break higher and is currently at about 10% gains. With our bullish thesis proving to be correct, we will add another 2% risk to this trade.

We will look to Buy the Jan 19th $50/55 Call Vertical @ $1.44 Debit. With a hypothetical portfolio of $100,000, I recommend risking 2% of the portfolio’s value to this trade, which is 14 Contracts for a risk of $2,016. We will set a stop loss on the put spread at around 50% of the premium paid @ $0.72 Credit.

BMY – Daily