Boston Scientific Calls Active

Boston Scientific (NYSE: BSX) is receiving heavy call activity in the Jan 2011 7.50 calls. Over 5,000 contracts have trade on the line, with the largest single block of 4,400 being bought on the offer for 2.20. Other smaller lots have also been purchased all morning between 2.15 and 2.30.

Boston Scientific traded down heavy October 20th after its earnings report; a look at the chart will see significant congestion and a gap around the 9 handle, which can prove to be resistance or a spring off point for the stock. Today’s trading in the calls reflect this as it could be outright purchases of cheap calls playing for a breakout above the level or the purchases could be cheap call buying hedging out short stock.