Wednesday, December 29, 2010
Buy Puts on Boston Scientific
This is a quick scalp trade for a quick gain. If BSX closes below 7.61 on the hourly charts, I am planning on buying the 7.50 put for approximately 19 cents. Price should fall within 2 days to at least 7.10 if not lower. This move will increase the value of the put to 40 cents for a quick doubling of the trade. If price goes above 7.90 after triggering the trade, exit the trade at about 8 cents. This is about a 2 to 1 RR and I would give it 75% probability.
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