DailyPlay – Opening Trade (BSX) Closing Trade (AMGN) – March 28, 2025

Closing Trade

• AMGN – 23% loss: Buy to Close 2 Contracts (or 100% of your Contracts) April 11 $315/$300 Put Vertical Spreads @ $7.35 Debit. DailyPlay Portfolio: By Closing both Contracts, we will be paying $1,470. We initially opened these 2 Contracts on March 21 @ $5.07 Credit. Our loss, therefore, is $228 per contract. The margin requirement per contract is $1,500 and we received a Credit of $507 per contract giving us a net margin requirement of $993. Our loss is $228 per contract which gives us a net loss of 23%.

BSX Bearish Opening Trade Signal

Investment Rationale

Boston Scientific (BSX) appears overextended both technically and fundamentally, making it a compelling candidate for bearish exposure. The stock has broken below key technical levels and is now retesting resistance, presenting a high-probability downside setup. Additionally, its valuation is significantly stretched relative to industry peers, despite only marginally superior growth metrics. This combination of technical weakness and fundamental overvaluation suggests downside risk toward $90.  

BSX recently broke down below a key trading range and has since rallied back to retest prior support, which is now acting as resistance. This price action presents an optimal risk/reward opportunity for bearish positioning, as failed retests of support-turned-resistance often lead to continued downside. Momentum indicators also confirm weakening price strength, reinforcing the potential for further declines. A downside target of $90 aligns with prior support levels.  

BSX is trading at a premium valuation despite subpar net margins and only slightly above-average growth rates compared to its industry peers. The elevated multiple suggests significant downside risk if growth expectations falter.  

• Forward PE Ratio: 35.19x vs. Industry Median 21.70x  
• Expected EPS Growth: 13.65% vs. Industry Median 11.25%  
• Expected Revenue Growth: 11.37% vs. Industry Median 7.73%  
• Net Margins: 11.05% vs. Industry Median 17.34%  

Our preference is to take a neutral to bearish outlook by harnessing options premiums through a bearish call spread – Selling to Open, BSX May 2, 2025 100/110 Call Verticall. This trade benefits from time decay and provides a favorable risk/reward profile for bearish exposure on BSX.

BSX – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 Contracts BSX May 2 $100/$110 Call Vertical Spreads @ $3.87 Credit per Contract.

Total Risk: This trade has a max risk of $1,839 (3 Contracts x $613) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $613 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue pull back from recent resistance.

1M/6M Trends: Neutral/Neutral

Relative Strength: 9/10

OptionsPlay Score: 105

Stop Loss: @ $7.74 (100% loss to value of premium)

View BSX Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View BSX Trade