$BSX bulls score 8-fold gains

Bullish option traders have racked up huge profits in Boston Scientific.

On Aug. 15, Investitute’s tracking systems detected the purchase of 4,500 September $36 calls in one print for $0.21 with shares at $33.89. Open interest in the strike was only 278 contracts before the trade occurred, showing that it was a new position.

Those calls traded up to $1.74 this afternoon, more than 8 times their purchase price. The stock rose 11.24% in the same time period, underscoring how options can far outperform their underlying shares. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

BSX popped 3.24% to $37.62 today. The medical-device manufacturer has received notable upgrades from analysts recently, including a price-target increase to $43 from $39 at Needham earlier this week.