Boston Scientific Corporation (BSX) Bettors Bail Amid New High

M&A news has Boston Scientific Corporation (BSX) fresh off a multi-year high

by

Published on Mar 2, 2015 at 11:11 AM
Updated on Apr 20, 2015 at 5:32 PM

Boston Scientific Corporation (NYSE:BSX) is fresh off a multi-year high of $17.25, after agreeing to buy Endo International plc's (NASDAQ:ENDP) urology portfolio for up to $1.65 billion. At last check, BSX was still up 2% at $17.24, bringing its year-to-date lead to more than 29%. Meanwhile, action is heating up in the stock's options pits.

So far, BSX calls are crossing the tape at two times the expected intraday rate, and more than 10 times the speed of puts. Digging deeper, the March 15 call is most active, with a mix of buyer- and seller-driven action. Those buying the calls to open expect BSX to extend its journey north of $15 through the next few weeks, while those selling the calls to close are locking in paper profits ahead of expiration.

Given BSX's technical tenacity, it comes as little surprise that analysts have boarded the stock's bullish bandwagon. Fifteen of 22 covering analysts have handed out "buy" or better ratings, versus seven "holds" and not a single "sell."

Sentiment appears less sanguine in Boston Scientific Corporation's (NYSE:BSX) options pits. The equity's 50-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 1.08 -- in the 78th annual percentile. However, a portion of these positions may have been initiated by shareholders picking up downside insurance.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Patent Lawsuit Loss Sends AMRN Stock Spiraling
Amarin just lost a major U.S. patent lawsuit for its heart drug Vascepa
RH Stock Sinks Despite Earnings Beat
J.P. Morgan Securities and Cowen and Company cut their price targets
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.