Bausch Health Guidance Brings Option Bulls

Speculators are scooping up weekly call options on BHC stock

Jan 7, 2019 at 10:54 AM
facebook X logo linkedin

Bausch Health Companies Inc (NYSE:BHC) is among the healthcare stocks making noise today. At the closely watched J.P. Morgan Healthcare Conference, Bausch said it expects an increase in year-over-year revenue in 2019, sending BHC stock 6.4% higher to trade at $22.61. What's more, BHC call options are flying off the shelves this morning, as traders speculate on more short-term upside for the shares.

In mid-December, BHC stock broke south of support at its 200-day moving average, and later that month bottomed at an eight-month low of $17.20. Since then, however, the equity has risen close to 32%, and is set to retake that trendline today.

BHC stock chart jan 7

Already today, Bausch has seen roughly 14,000 calls cross the tape -- three times the average intraday pace. That's compared to fewer than 4,000 put options. Among the most active are the weekly 1/11 24- and 25-strike calls, which it appears are being bought to open. By purchasing the calls to open, the buyers expect BHC stock to surmount the strikes by the close on Friday, Jan. 11, when the options expire.

Today's appetite for calls merely echoes the growing trend, though. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open more than three Bausch Health calls for every put in the past two weeks. Recent buyers will be happy to note that BHC has a Schaeffer's Volatility Scorecard (SVS) of 88 out of a possible 100, meaning the shares have exceeded options traders' volatility expectations in the past year.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI