Bristol-Myers Squibb (BMY) Put Sale – 4/10/2025

The market has been WILD lately, to say the least. Volatility, and fear, are at peak levels ever since “Liberation Day.” We had a face-melting rally yesterday when Trump announced a 90-day tariff delay. Today, we seem to be giving most of it back.

I noticed today that Bristol Meyers Squibb Company (BMY), a pharmaceutical company was down some 6% today, more than any other stock in my watchlist. I also observed on the chart, above, that BMY was deeply oversold, with an RSI of only 24. I observed that the price was in a steep, several days long decline and was headed towards a support area of $41.20.

The good folks at Sure Dividend suggest the fair value price of BMY is $74. With the price at $49.25, this seems like a no-brainer. So I sold to open the May 16, 2025 put at the $43 strike. If we get assigned, this price is nearly the lowest available in the past year.

Option Type Short Put (STO)
Date of Sale 04/10/2025
Option Sold -BMY250516P43
Expiration Date 05/16/2025
Days to Expiration 36
Number Sold 1
Premium per Contract $114.00
Total Premium Received $114.00
Potential Liability/Cash Put Reserve $4,300.00
Company Ticker BMY
Stock Price at time of Put sale $49.25
Strike Price $43.00
Cost per Share if Assigned $41.86
Discount to Current Price If Assigned 15.01%
Annual Dividend $2.48
Dividend Yield at Current Price 5.04%
Dividend Yield on Cost if Assigned 5.92%
Net ROI on Reserve If Not Assigned 2.31%
Annualized ROI on Reserve If Not Assigned 23.47%