Fast profits for $BSX call buyers

It has taken only three sessions for bullish option traders to double their money in Boston Scientific.

On Feb. 21, Investitute’s tracking systems flagged the purchase of 4,400 18April $45 calls for $0.20 to $0.36 with shares at $40. There was no open interest in the strike before the trades occurred, showing that this was fresh buying. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $0.60 this morning, more than double their average purchase price. The stock rose 1.83% in the same time frame, underscoring how quickly options can far outpace gains in their underlying shares.

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 reached $40.75 this morning, just off the 52-week high of $40.81 posted in the previous session, before ending the session down 1.31% to $39.99. The medical-device maker rallied after topping earnings expectations on Feb. 6 and is scheduled to present at the annual Leerink Global Healthcare Conference on Feb. 28.