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Investor stays in Boston Scientific

Mike Yamamoto (mike.yamamoto@optionmonster.com)

An investor is buying more time for Boston Scientific to break out of its recent range.

optionMONSTER's tracking systems shows that a trader sold 5,000 November 12 calls mostly for $0.06 and bought roughly the same number of December 12 calls for about $0.34. Volume was below previous open interest in the November contracts but above it in the December strike, indicating that a position is being rolled forward.

The investor is closing the November calls, which expire at the end of this week, and is opening a new position in December for a net cost of about $0.28. The new long calls , which lock in the price where the stock can be purchased, are looking for a modest rally in the next six weeks but will expire worthless if shares remain below $12. (See our Education section)

BSX rose 2.06 percent on Friday to close at $11.88. On Oct. 24 the stock gapped down from a previous close of $12.29 after the medical-device developer issued a disappointing sales forecast and announced the resignation of its chief financial officer. Shares have been in a tight range since then, apparently trapped below resistance at the $12 level.

The company is scheduled to present at the annual Credit Suisse Healthcare Conference tomorrow morning.

Total option volume in the name topped 19,400 contracts on Friday, nearly 4 times its daily average for the last month. Overall calls outnumbered puts by about 4 to 1.

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