BMY Trade on Jan 3, 2019 09:32 from math_psycho: Tradervue User Stock Trades.

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math_psycho

 

TICKER: BMY
BIAS: SHORT
SUPP: N/A
RES: 46.50, 47, 47.50
GAP%: -14
AVGV: 14M
ATR: 1.41
FS%: 2.97
INST.OWN%: 74.8
MARKET CAP: 81.76B

NEWS: In the first blockbuster merger of the new year, Bristol-Myers Squibb (NYSE:BMY) has agreed to acquire Celgene (NASDAQ:CELG) for $50/share in cash plus one BMY common share for each CELG share, valuing the transaction at $74B. CELG shareholders will also receive one Contingent Value Right (CVR) for each share owned to receive a $9 cash payment triggered by the achievement of future regulatory milestones. When the deal is closed, BMY shareholders will own ~69% of the combined company and CELG shareholders will own ~31%. BMY will finance the transaction, expected to close in Q3, with cash on hand and debt. It will also accelerate its repurchase of up to $5B in common stock.

NOTES: The stock gapped down a significant 14% premarket and on the acquisition news. This deal seems extremely signifincant given that that the cost to BMY is $74B while their market cap is $81.76B. My thought is that large institutions who own 74.8% of the stock are adding selling pressure here.

PLAYBOOK: GAP DOWN BREAKOUT SHORT and GAP DOWN MOMENTUM SHORT. I looked for a break of the lows for my initial entry at the semi-whole $46.50 and took profits fairly quickly when momentum showed signs of slowing. I waited for a pullback to VWAP for the next entry at $46.24 and rode the momentum down for over another point.


Execution detail:

Date/time Symbol Side Price Position
2019-01-03 09:32:49 BMY sell $46.500 short
2019-01-03 09:34:47 BMY buy $45.840 short
2019-01-03 09:35:29 BMY buy $45.690 0
2019-01-03 09:40:18 BMY sell $46.240 short
2019-01-03 09:49:10 BMY buy $45.290 short
2019-01-03 09:51:54 BMY buy $45.020 0


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