Earnings Play Update

Earnings Play Update

Hello Smart Option Sellers! We had two unofficial earnings plays offered up yesterday. How did they do? Bristol Myers Squibb (BMY) BMY put out solid numbers and in the pre-market trading right now, the stock is up from yesterday's close about $1.80 per share at $55.55. The advice was to look at purchasing the $52.50 and $53 puts for your downside and the $56 and $56.50 calls for the upside. As of now, it looks the chance to profit will come on the upside. Depending on which strikes you purchased, BMY needs to get into the $56-$57 range to cover your costs. If you spent a total of $.40 -$.50 on both trades (which covers both the call and put purchases), you would need to sell in combination any of the options you could by more than that amount to break even. Most likely the put options will have no value this morning and the calls will have some value. The best bet at this point is to watch the stock today and tomorrow and hope the momentum can keep moving the stock higher. The options expire tomorrow at the close of the day, so I would recommend selling any options that still have value at that point to recoup any money invested. Most likely it will be the call options that will have value. Amgen (AMGN) AMGN is moving lower this morning to the tune of $5 per share, currently near $160. At this point, it's not enough to cover the $10 move we needed to turn a profit. As with BMY, it would be best to monitor the stock today and tomorrow and see if the momentum will keep it moving to the downside. If it can move below $155, the put options will move up in value and you could sell them for a potential profit. The best case scenario for both stocks would've been if they opened beyond the range we needed. As of now, it doesn't look like that will happen, but hopefully the momentum will carry each stock in the direction necessary. Watch your plays if you decided to get in and see if you can possibly cover your costs by selling the options today or tomorrow. That's all for now. Continue to send me your questions. You can always contact us here. Regards, Lee Let's Grab That Cash!

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