$BSX bulls cash in on profits

$BSX bulls cash in on profits


Boston Scientific (BSX) is delivering profits to bullish option traders today.

On Aug. 22Market Rebellion’s Unusual Option Activity Service found that 6,000 Weekly $51.50 calls, expiring Sep. 1, were bought for $0.99 to $1.12 with shares at $50.26. This was clearly fresh interest as the open interest was just 193.

Those calls have changed hands for as much as $3.25 this session, a 190.18% return, while the stock rose 8.97% 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 down by 0.31% at $54.51 this afternoon.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

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