Traders are placing upside bets on Boston Scientific ahead of its quarterly results this week.
Investitute’s tracking systems today detected the purchase of 4,000 May $25.50 calls in one print for $0.72 as shares traded for $25.42. There was no open interest in the strike before the session began, showing that this is a new position.
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 rose 2.82 percent today to close at $25.56. The medical-device manufacturer is scheduled to report earnings before the market opens on Thursday.
Today’s calls are looking for the stock to rise above $26.22 by expiration on May 29. One reason for the optimism may be today’s announced purchase of rival C.R. Bard by Becton Dickinson for $24 billion.