June 22, 2020 - MDT Alert (BMY)

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.

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