Boston Scientific Corporation (BSX) Bettors Bail Amid New High

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

Digital Content Group
Mar 2, 2015 at 11:11 AM
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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.

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