Boston Scientific (BSX) is delivering gains to bullish option traders today.
On Aug. 25, Market Rebellion’s Unusual Option Activity Service found that 2,500 Weekly $51 calls, expiring Sep. 1, were bought for $1.20 to $1.25 with shares at $50.36.
Those calls have changed hands for as much as $2.85 this session, a 128% return, while the stock rose 6.55% in the same time frame, illustrating the kind of leverage that can be achieved with options.
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 was last up by 5.98% at $53.80 this afternoon.
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