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January 4, 2013  Fri 12:21 PM CT

BSX: SEE CHART GET CHAIN FIND STRATEGIES
Boston Scientific is drawing upside option activity for the second day in a row as the medical-device company tries to rebound from years of bearishness.

Traders were focused on the February 6s yesterday and are moving up to the August 7 calls today, buying more than 5,000 contracts for $0.27, according to optionMONSTER's Heat Seeker tracking system. Volume is almost 8 times the strike's open interest at the beginning of the day, indicating that these are new positions.

BSX is down a penny to $5.94 this afternoon but is up 7 percent in the last month. The stock is down from over $45 in 2004 but has been finding support around $5 since late 2008. Quarterly results have been mixed, punctuated by weakness in its cardiac business, and management is seeking new growth in other areas.

Today's long calls, which lock in the price where the stock can be bought, are looking for BSX to gain more than 22 percent by expiration in mid-February. Total option volume is quadruple the daily average so far today, with calls outnumbering puts by 55 to 1. (See our Education section)
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