Option traders keep cashing in on $BSX

Boston Scientific (BSX) continues to deliver for option traders who opened bullish positions in the name.

On Nov. 12, Market Rebellion’s Unusual Activity Service flagged the purchase of 4,250 Weekly $41.50 calls expiring today for $0.54 to $0.74 with shares at $40.60. This was clearly fresh buying, as open interest in the strike was but a mere 5 contracts before that session began.

Those calls traded for as much as $2.20 this morning, better than 3 times their average purchase price. The stock rose 7.66% at the same time, showing how quickly options can far outpace gains in their underlying shares.

It is the fourth winning trade in the name to be posted on Market Rebellion in recently.

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 is currently higher by 1.73% at $44.03 this session, a new multi-year high.