Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 12, 2013  Tue 10:11 AM CT

BSX: SEE CHART GET CHAIN FIND STRATEGIES
Boston Scientific has gone a scorching run higher in recent months, but a large trade today is positioning for a potential pullback.

A trader bought 5,000 March 7 puts for the ask price of $0.07, according to optionMONSTER's Depth Charge system. The volume was twice the previous open interest, so it was a new position.

The put buying isn't tied to any trading in the underlying shares identified by our systems today, though it could be hedging against an existing long position. If it is an outright bearish play, the trader is making a cheap bet with the delta of those puts at just 0.12--meaning that there is a 12 percent probability that they will be in the money at expiration. (See our Education section)

BSX is down 0.4 percent to $7.60 this morning but has run up from support at $5 in the last three months. The medical-device maker hit a 52-week high last week and is now up against resistance that has held up for the last three years.
Share this article with your friends


Related Stories

BSX

Boston Scientific attracts the bulls

October 23, 2014

The medical-device maker roses after meeting quarterly expectations and raising its outlook yesterday, and traders are betting that the momentum will continue.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER