BMY pushing into a sorta-kinda-almost gap. Bullish

NYSE:BMY   Bristol-Myers Squibb Company
I like BMY here. I already own shares, but am adding a call spread.

Obviously, I am chasing short-term a bit, which is not generally a good idea. In this case I am willing to take the risk because of the overhead gap in volume (it's not a true gap, of course), and the fact that the stock seems ready to break its long-term down trend.

Fundamentally, I think the strength is supported by good earnings, low P/E, a rich dividend, and recent successes in drug trials. The reason for the longer-term weakness is the threat of blockbuster drugs losing their protection from generics, and increased leverage, due to the company buying out smaller biotechs to improve its drug pipeline.

I added a March 24, 54/56 call spread, currently priced at 60¢.

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