Boston Scientific Corp. (BSX)

Update 9/145/2023: I exited my short iron condor on BSX, 36 days before expiration, for a $0.52 debit per contract/share, a profit before fees of $52 per contract. Shares were trading at $52.79, up $2.26 from the entry level.

The Implied Volatility Rank at exit was 4.8%, down 41.3 points from the entry level.

I exited because the position reached 50% of maximum potential profit, my normal exit point for options positions. The profit mainly came from a collapse in implied volatility

Shares rose by 4.5% over 24 days for a 68% annual rate. The options position produced a 100% return for a 1,521% annual rate.

---

I have entered a short iron condor on BSX, using options that trade for the last time 60 days hence, on October 20. The premium is a $1.04 credit per contract share and the stock at the time of entry was priced at $50.53.

The Implied Volatility Ratio stood at 46.1%.

BSX-iron condor	Strike	Odds	Delta
Calls
Long	60.00	94.0%	6
Break-even	56.04	86.5%	13.5
Short	55.00	79.0%	21
Puts
Short	47.50	74.0%	25
Break-even	43.54	83.0%	16
Long	42.50	92.0%	7

The premium is 20.8% of the width of each of the short/long spreads. The profit zone covers a 10.9% move to the upside and a 16.1% move to the downside.

The risk/reward ratio is 3.8 :1, with maximum risk of $396 and maximum reward of $104 per contract.

How I chose the trade. I selected the short strike prices based on the expected range of the expiration close, based on the options pricing, and then adjust the strikes to coincide with the expected range based on Elliott Wave analysis.

By Tim Bovee, Portland, Oregon, August 21, 2023

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.