Covered Call Initiated With Bristol-Myers Squibb (BMY)

by | Apr 30, 2021 | Covered Calls

Bristol Myers Squibb Logo

Bristol-Myers Squibb announced its quarterly earnings prior to the market opening today and the reaction wasn’t pleasant. At the end of the trading session, BMY was down 4.8%. That price move led to BMY passing one of my covered call screeners so I bought shares at $62.76 and then sold calls. I wasn’t of a strong opinion to go with either ITM or OTM calls so I sold 50% ITM and 50% OTM. The ITM calls are May-21 $62.50 and the OTM calls are May-21 $65.00. For the CC trades that I have posted here this year, I always sold either ITM calls or OTM calls for a particular trade. There is no reason for it to always be that way and today’s trade illustrates my willingness to sell both types of calls for a given trade.

Bristol Myers ITM Covered Call

Bristol Myers OTM Covered Call

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[…] of other factors led to both stocks passing one of my covered call screeners. As with my recent Bristol-Myers Squibb trade, I decided to buy shares and then evenly split sales of ITM and OTM […]