It shouldn't be this easy to make money.
But if you follow the rules of technical, fundamental, news and billionaire trading, it becomes easier.
Ever since BMY plummeted on earnings and guidance, it became the buying opportunity of a lifetime. Far too much doom and gloom was priced in. It was time to buy the blood in the streets, as Rothschild often did. It was time to buy the excessive pessimism that Templeton did. And it was time to get greedy, as others got fearful, as Buffett still does.
As we noted on January 22, 2017:
Shares of Bristol Myers (BMY) took a bad hit the other day, falling from $60 to $49.23. However, it seems to have caught prior support at October 2016 lows. As long as that holds, the stock could bounce shortly from oversold MACD, RSI and Money Flow points, as well. Apparently, one of the company’s many drugs had bad news. But remember, this is BMY. It’s an industry heavyweight. It’s simply down temporarily, in our opinion. And we’re trying to take full advantage of that. Consider buying to open the March 2017 49 calls at market. BMY is far too oversold.
As of that Monday, January 23, the March 49 calls traded at $2.35. Then, on the evening of February 5, 2017, we reiterated buying the BMY March 49 calls, which traded at $2.80 by February 6. The calls now trade at $3.50, where we’re recommending that you sell to close half of each.