Today, I would like to make a suggestion on a stock I mentioned on one of John's webinars. In fact, I suggested it was a buy last week.
And I think we now have the entry.
The stock is Bristol Myers Squibb Co. (BMY).
BMY is trading at $57.33 as I write this and it does have weekly options.
I am going to suggest you trade the July 24th series. This should give us some time to see if BMY follows through as I expect.
My suggestion is going to be a debit spread and here is the trade:
Buy to Open July 24th - $57 Call for $2.44
Sell to Open July 24th - $63 Call for $0.60
The net debit will be $1.84 per spread. The maximum gain on the trade will be $3.16 per spread or 172% return.
Based on the tracking portfolio, limit the buy in to 6 spreads or 1.1% of the tracking portfolio.
I am suggesting a debit spread because the long calls are slightly out of the money.
