Medical device manufacturer Boston Scientific Corporation (BSX) is up 19 percent over the past year, and shares trade near a 52-week high. One trader sees the stock moving even higher in the coming weeks.
That’s based on the January 5, 2024 $58 calls. With 24 days until expiration, 3,351 contracts traded compared to a prior open interest of 116, for a 29-fold rise in volume on the trade. The buyer of the calls paid $0.19 to make the bullish bet.
Boston Scientific shares recently traded near $55, so they would need to rise $3, or just over 5 percent, for the option to move in-the-money. It would also mean shares breaking over their 52-week high of $56.22.
Boston Scientific has shown decent growth over the past year, with revenues rising 11 percent. Earnings are up an impressive 168 percent. Shares are priced at 25 times forward earnings, about in-line with the company’s historic trends.
Action to take: Shares are in an uptrend, and can likely continue moving higher in the coming weeks before getting too heavily overbought. Investors can likely see 5-10 percent gains. At present, BSX does not pay a dividend.
For traders, the January 5th calls are aggressive, and may not move in-the-money. But if shares move higher in the coming weeks on a seasonal rally, the inexpensive options could see high double-digit or even triple-digit gains before expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.