Are Options Traders Betting on a Big Move in Bristol-Myers Squibb Stock?
Investors in Bristol-Myers Squibb Company BMY need to pay close attention to the stock based on moves in the options market lately. That is because the July 18, 2025 $25 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Bristol-Myers Squibb shares, but what is the fundamental picture for the company? Currently, Bristol-Myers Squibb is a Zacks Rank #3 (Hold) in the Medical - Biomedical and Genetics industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 60 days, one analyst increased the earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.66 per share to $1.53 in that period.
Given the way analysts feel about Bristol-Myers Squibb right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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This article originally published on Zacks Investment Research (zacks.com).
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The remarkable increase in Bristol-Myers Squibb's option trading volume suggests a high probability of betting activity surrounding potential large market movements, piquing the interest among traders and investors alike.
A recent surge in options trading activity for Bristol-Myers Squibb highlights the potential of sharp stock movements, raising flags that investors might be betting on a significant move either upwards or downwards due to unforeseen developments within this healthcare giant.
Recent options trading patterns suggest a heightened level of anticipation for potential significant moves in Bristol-Myers Squibb's stock, hinting at the possible stability or volatility that could shape up as an intriguing investment opportunity.
Given the recent news of potential new treatments and product launches at Bristol-Myers Squibb, a notable increase in options trading activity can be seen as investors eagerly wagering on substantial price swings suggesting heightened market interest or uncertainty.
Sure, here's a sample comment based on the headline:
Currently observing heightened interest in BMS stock from options traders. The signals appear suggesting an anticipation of significant price action by Bristol-Myers Squibb Company within both short and long term may be at play.
Certainly observes a notable uptick in options trading volume related to Bristol-Myers Squibb stock, indicating an increased level of interest among traders and potential for significant price fluctuation ahead.
