Tuesday, July 28, 2009

Is BSX poised to take off?

A five-year declining trend seems to have reversed at the beginning of 2009. A new CEO has taken over in July '09.

The five-month trend lines are clearly rising; lower trend with a slope of 0.8/mo; upper trend line with a slope of 0.6/mo. MACD is leading. There are small peaks of 0.5, each time leading to a pullback but slowly rising overall.

There are two contenders for Call options:

Jan 10, 11.00@1.10
delta: 0.51 theta: -0.0037 IV: 42.6 gamma: 0.1291

Jan 11, 12.50@1.70
delta: 0.495 theta: -0.0022 IV: 44 gamma: 0.0703

Let's try the Jan 11 option and check back in a month. If BSX has crossed 11 by then, option prices should be higher.

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