Three More Options Trades
Bristol Myers Squibb Co., Honeywell International Inc. and Kimberly Clark Corp.
Wednesday, January 22, 2014

**OPTIONS TRADE 1: Buy the BMY Mar 2014 55.000 call (BMY140322C00055000) at or under $2.15, good for the day. Place a protective stop limit at $0.80 and a pre-determined sell at $3.50.

**OPTIONS TRADE 2: Buy the HON Mar 2014 90.000 call (HON140322C00090000) at or under $2.45, good for the day. Place a protective stop limit at $1.00 and a pre-determined sell at $4.00.

**OPTIONS TRADE 3: Buy the KMB Apr 2014 110.000 call (KMB140419C00110000) at or under $1.50, good for the day. Place a protective stop limit at $0.60 and a pre-determined sell at $2.80.

by Ian Harvey

January 22, 2014

Bristol Myers Squibb Co.

**OPTIONS TRADE 1: Buy the BMY Mar 2014 55.000 call (BMY140322C00055000) at or under $2.15, good for the day. Place a protective stop limit at $0.80 and a pre-determined sell at $3.50.

Bristol Myers Squibb Co. (NYSE: BMY), a global biopharmaceutical company, is set to report fourth-quarter earnings on Friday morning, January 24th. The company has a market capitalization of $90.10 billion. It is expected to report FY 2013 fourth-quarter EPS of 39 cents on revenue of $4.30 billion, compared with a profit of 56 cents a share on revenue of $4.19 billion in the year-ago period. Bristol Myers Squibb is trading around $54.68 a share. Over the past 12 months, the stock has gained 59.3 percent.

Bristol-Myers Squibb Co has matched or exceeded analysts' bottom-line estimates in six out of the past eight quarters.

Bristol-Myers Squibb had its price objective hoisted by Argus from $58.00 to $62.00 in a report released on Wednesday, 15th January, 2014. Argus currently has a buy rating on the stock.

A number of other analysts have also recently weighed in on BMY. Analysts at Barclays upgraded shares of Bristol-Myers Squibb from an equal weight rating to an overweight rating in a research note to investors on Friday, January 10th. They now have a $65.00 price target on the stock, up previously from $52.00. Separately, analysts at TheStreet reiterated a buy rating on shares of Bristol-Myers Squibb in a research note to investors on Thursday, January 9th. Finally, analysts at Jefferies Group raised their price target on shares of Bristol-Myers Squibb from $48.00 to $50.00 in a research note to investors on Thursday, January 9th. They now have a hold rating on the stock.

One investment analyst has rated the stock with a sell rating, six have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. Bristol-Myers Squibb has a consensus rating of Buy and a consensus target price of $53.43.

Bristol-Myers Squibb last announced its earnings results on Wednesday, October 23rd. The company reported $0.46 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.44 by $0.02. The company had revenue of $4.07 billion for the quarter, compared to the consensus estimate of $4.02 billion. During the same quarter last year, the company posted $0.41 earnings per share. Bristol-Myers Squibb’s revenue was up 8.8% compared to the same quarter last year. On average, analysts predict that Bristol-Myers Squibb will post $1.75 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which is scheduled for Monday, February 3rd. Investors of record on Friday, January 3rd will be given a dividend of 0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.59%. The ex-dividend date of this dividend is Tuesday, December 31st. This is an increase from Bristol-Myers Squibb’s previous quarterly dividend of $0.35.

Honeywell International Inc.

Honeywell International Inc. (NYSE: HON), a diversified technology and manufacturing company, will also report fourth-quarter earnings on Friday morning, January 24th. The company has a market cap of $70.64 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.21 on revenue of $10.19 billion, compared with a profit of 32 cents a share on revenue of $9.58 billion in the year-ago period. Honeywell International is trading at around $90.99 a share. Over the past 12 months, the stock has gained 34.9 percent.

Despite Citigroup Inc. downgrading shares of Honeywell International from a buy rating to a neutral rating in a report issued on Wednesday, 8th January, 2014, many other analysts certainly feel that HON will perform. Citigroup currently has a $99.00 target price on the stock.

Analysts at FBR Capital Markets raised their price target on shares of Honeywell International from $90.00 to $98.00 in a research note to investors on Tuesday, December 31st. They now have a market perform rating on the stock. Separately, analysts at Barclays raised their price target on shares of Honeywell International from $88.00 to $98.00 in a research note to investors on Wednesday, December 18th. They now have an overweight rating on the stock. Finally, analysts at Sterne Agee reiterated a buy rating on shares of Honeywell International in a research note to investors on Monday, December 9th. They now have a $104.00 price target on the stock, up previously from $88.32.

Seven equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. Honeywell International currently has a consensus rating of Buy and an average price target of $90.41.

Honeywell International last announced its earnings results on Friday, October 18th. The company reported $1.24 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $1.24. The company had revenue of $9.60 billion for the quarter, compared to the consensus estimate of $9.92 billion. During the same quarter in the prior year, the company posted $1.20 earnings per share. The company’s quarterly revenue was up 3.3% on a year-over-year basis.

Kimberly Clark Corp.

**OPTIONS TRADE 3: Buy the KMB Apr 2014 110.000 call (KMB140419C00110000) at or under $1.50, good for the day. Place a protective stop limit at $0.60 and a pre-determined sell at $2.80.

Kimberly Clark Corp. (NYSE: KMB), engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers using advanced technologies in fibers, nonwovens and absorbency, will also report fourth-quarter earnings on Friday morning, January 24th. The company has a market capitalization of $40.50 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.37 on revenue of $5.28 billion, compared with a profit of 68 cents a share on revenue of $5.31 billion in the year-ago period. Kimberly Clark is trading at around $105.79 a share. Over the past 12 months, the stock has gained 23.6 percent.

Kimberly-Clark's core business strategy is a sound one, and the company will offload the uncertain healthcare business without significantly affecting the company's revenue and margin. This transaction is expected to be tax free, so the company will receive a breather in tax liability. Since the company has been adding shareholder value through its initiatives, this a recommended stock.

Kimberly-Clark Corp.‘s stock had its “neutral” rating restated by Zacks in a research report issued to clients and investors on Monday, American Banking News.com reports. They currently have a $110.00 target price on the stock. Zacks‘ price objective suggests a potential upside of 4.66% from the company’s current price.

Zacks‘ analyst wrote, “Kimberly-Clark’s third-quarter 2013 earnings of $1.44 per share beat the Zacks Consensus Estimate by 2.9% and the prior-year quarter earnings by 7.5%. The upswing in earnings was driven by organic sales growth, cost savings, favorable tax rates and lower share count, which made up for increased input costs and currency headwinds. Organic sales increased 5% on the back of volume growth and better pricing. The restructuring and cost savings program also boosted profitability. We are encouraged by the company’s decision to shed its health-care businesses to focus on its consumer and professional brands. In addition, the company’s efforts to streamline the European facilities by dissolving the diaper segment of Western and Central Europe should optimize resources. Further, the company’s regular innovations, growth initiatives and a strong international presence make the stock attractive. However, slow economic recovery, increased input and marketing expenses and currency headwinds keep us on the sidelines with a Neutral recommendation. “

Other equities research analysts have also recently issued reports about the stock. Analysts at Goldman Sachs Group Inc. reiterated a “sell” rating on shares of Kimberly-Clark Corp. in a research note to investors on Friday, November 15th. Separately, analysts at JPMorgan Chase & Co. raised their price target on shares of Kimberly-Clark Corp. from $110.00 to $121.00 in a research note to investors on Wednesday, October 23rd. They now have a “neutral” rating on the stock. Finally, analysts at BMO Capital Markets raised their price target on shares of Kimberly-Clark Corp. from $96.00 to $105.00 in a research note to investors on Wednesday, October 23rd. They now have a “market perform” rating on the stock.

Kimberly-Clark Corp. last issued its quarterly earnings data on Tuesday, October 22nd. The company reported $1.44 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.40 by $0.04. The company had revenue of $5.30 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same quarter last year, the company posted $1.34 earnings per share. Kimberly-Clark Corp.’s revenue was up .3% compared to the same quarter last year.

The Recommended Trades:-------------

**OPTIONS TRADE 1: Buy the BMY Mar 2014 55.000 call (BMY140322C00055000) at or under $2.15, good for the day. Place a protective stop limit at $0.80 and a pre-determined sell at $3.50.

**OPTIONS TRADE 2: Buy the HON Mar 2014 90.000 call (HON140322C00090000) at or under $2.45, good for the day. Place a protective stop limit at $1.00 and a pre-determined sell at $4.00.

**OPTIONS TRADE 3: Buy the KMB Apr 2014 110.000 call (KMB140419C00110000) at or under $1.50, good for the day. Place a protective stop limit at $0.60 and a pre-determined sell at $2.80.



”Success is simple. Do what's right, the right way, at the right time.”


Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



Back to Stock Options Made Easy Home Page

Back to Option Trades from Options Trade – BMY-HON-KMB-Calls - Wednesday, January 22, 2014




Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.




Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter