Boston Scientific is trading at multi-year highs, but one large put buyer is positioning for a possible pullback.
More than 10,000 May 14 puts traded on Friday, led by a block of 8,711 that was bought for the ask price of $0.95. Open interest in the strike was just 116 contracts before the trade appeared, so it is clearly a new position.
These puts weren't tied to any trading in BSX shares identified by our systems in the session, so they could have been purchased as an outright bet that BSX will give up recent gains. Alternatively, however, they could be intended as a protective hedge on an existing long position in the stock. (See our Education section)
BSX was up 0.41 percent to $14.65 on Friday, its highest close since 2007. Shares of the medical-device maker were below $14 earlier this week and down at $13 two weeks ago.
Friday's total option volume in the name was more than 2.5 times its daily average for the last month. Overall puts outnumbered calls by nearly 6 to 1.
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