Bullish option traders are logging big gains in Bristol-Myers Squibb (BMY) today for the fourth time in the just over the last month.
On Dec. 1, our Unusual Activity Service identified significant bullish call buying, with 2,200 12December 52 calls bought in one order for $0.37-$0.40 above the existing open interest of 613 contracts, with BMY shares trading at $48.86-$48.91. The trade followed unusual call activity in 05December 52/53/54 calls during the previous few sessions.
Those 12December 52 calls traded as high as $0.95 today with the stock at $52.49, delivering impressive returns of approximately 146.75% from the initial midpoint entry price of $0.385. Meanwhile, BMY shares gained approximately 7.36% from their initial midpoint trading level around $48.89, demonstrating how options can deliver significantly amplified returns compared to simply owning the underlying stock.
This performance illustrates the power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.
Multiple Catalysts Converge for Perfect Setup
The timing of the December 1st call buying proved remarkably prescient, as multiple major catalysts emerged over the following days that drove BMY’s rally. On December 1st itself, Bristol Myers presented over 95 data disclosures at the American Society of Hematology Annual Meeting, including 27 oral presentations showcasing positive results from its hematology pipeline including Iberdomide, Golcadomide, BCL6 Degrader, and Breyanzi.
The company’s Chief Medical Officer emphasized that the data from targeted protein degradation and cell therapy research platforms may redefine the treatment paradigm for many blood cancers, with new data supporting long-lasting patient benefits. The hematology pipeline forms a large part of Bristol Myers’ “growth portfolio,” which grew 18% year-over-year in Q3 2025 to $6.9 billion in sales, providing crucial offset to upcoming patent cliffs on legacy blockbusters.
Cobenfy Trial Continuation Sparks Major Rally
The primary catalyst driving BMY’s explosive move came on December 3rd, when the company announced it would continue enrolling patients in its ADEPT-2 Phase 3 study of Cobenfy for psychosis associated with Alzheimer’s disease. After identifying irregularities at a small number of trial sites and excluding that data, an independent Data Monitoring Committee reviewed interim efficacy and safety results and recommended continuing the study with additional patient enrollment.
The market reacted positively to what could have been negative news, interpreting the continuation as validation that the underlying data showed promise. Bristol Myers’ share price jumped more than 6% intraday on December 3rd to around $51.32, extending a multi-day rebound. Cobenfy represents a critical asset from the company’s $14 billion Karuna Therapeutics acquisition, and successful completion of ADEPT-2 and other Alzheimer’s psychosis trials by late 2026 would add a large, durable new franchise.
AI Drug Discovery Milestone Validates Innovation Strategy
Adding further momentum on December 3rd, Terray Therapeutics announced an AI-enabled drug discovery milestone in its multi-target collaboration with Bristol Myers Squibb. The milestone was achieved using EMMI, Terray’s AI-native platform combining a 13-billion-plus target-ligand binding dataset with high-throughput experimentation and generative models.
The collaboration focuses on difficult-to-drug small-molecule targets that lack obvious starting chemistry, with Bristol Myers supplying disease-area targets and taking over development and commercialization of selected compounds. This meshes with Bristol Myers’ deployment of more than 30 generative AI solutions across R&D, clinical development, supply chain, and commercial operations, demonstrating the company’s commitment to leveraging cutting-edge technology to accelerate drug discovery.
FDA Approval Expands Breyanzi Franchise
Capping off the positive news flow, on December 5th the FDA approved Breyanzi for adult patients with relapsed or refractory marginal zone lymphoma, making it the only CAR T cell therapy approved by the FDA for five cancer types. The approval was based on results showing a 95.5% overall response rate in the third-line plus setting.
Breyanzi is now broadly covered by commercial and government insurance programs in the U.S., and the expansion adds high-margin oncology revenue less exposed to the 2028-2030 patent cliff facing Eliquis and Opdivo. The approval reinforces Bristol Myers’ leadership in CAR-T cell therapy across multiple approved indications in major markets.
The convergence of strong ASH hematology data on December 1st, the positive Cobenfy trial continuation and AI milestone on December 3rd, and the Breyanzi FDA approval on December 5th created an ideal environment for the December 12th call options to capture maximum upside. The timing of the call buying on December 1st at 2:14 PM, positioned at the start of this multi-day catalyst sequence, demonstrates the exceptional nature of the unusual options activity that preceded one of Bristol Myers’ strongest weekly performances in 2025.
BMY was last up 0.63% at $52.31.
