OptionsHouse

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 calls buy time for rally

September 13, 2016

The medical-device manufacturer has been range-bound for months, but one investor is looking for shares to break out in coming weeks.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »