Bristol-Myers Squibb has been running hard, and the bulls are
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
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
section for more on how to manage trades more effectively with
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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