How To Target A 10% Yield While Catching The BSX Stock Knife?

Generate an immediate income that you keep regardless, plus the opportunity to buy the stock cheaper should its price fall far enough.

Boston Scientific (BSX) has had a rough year, with the stock trading around $45 after a punishing slide that has it sitting about 59% below its 52-week high. For investors eyeing the medical device maker, that kind of drop raises a tough question: Is this a broken stock or a bruised opportunity? Here’s a trade that pays you a healthy income stream right now to decide, while lining up a potential entry point at a price well below even today’s levels.

10.0% annualized yield at a 30% margin of safety, by selling put options.

• Sell a put option on BSX expiring 6/17/2027, with a strike price of $30.
• Collect roughly $170 in premium per contract (each contract covers 100 shares).
• That works out to about 6.0% annualized on the $3,000 of cash you set aside to secure the trade.
• Park that cash in a money market or savings account earning roughly 4.0%, and your total yield climbs to about 10.0%.
• And if BSX falls below $30, you buy it at $30, an effective entry near $28.30 a share after the premium, about a 37% discount to today’s $44.60.

How the Trade Plays Out

If BSX stays above $30 through 6/17/2027, the put expires worthless, and you simply keep the full $170 premium. That is about 5.7% on the $3,000 you set aside over 346 days, cash that might otherwise earn you 4.0% or so. You never buy the stock and keep the income, free to do it again.

If BSX closes below $30, you are assigned and buy 100 shares at $30. The $170 premium you already pocketed lowers your effective cost to about $28.30 a share, roughly a 37% discount to today’s price, though if the stock has fallen further by then, you would be holding a paper loss.

So what happens if BSX really does close below $30, and you are the one buying? Then everything rests on a single question.

Would You Be Happy To Own BSX Down Here?

So, if you end up owning the shares, what exactly are you buying into? You’re stepping into a company at a crossroads. Management recently did something it is “not proud of”: it cut full-year guidance, reducing its organic growth forecast to a range of 6.5% to 8%. The trouble is concentrated in what were supposed to be its star franchises. The WATCHMAN heart device, while still growing 19% in the first quarter, came in below expectations. The electrophysiology, or EP, business is losing a bit more share than the company’s management anticipated, and the Urology division posted a meager 1% organic growth in its last quarter.

But that’s not the whole story. While those three businesses struggle, other parts of the portfolio are performing well. The Neuromodulation and Interventional Oncology businesses both posted organic sales growth of 15% in the first quarter. And even with the top-line haircut, the company still expects to deliver adjusted earnings growth of 9% to 11% for the year, a sign of disciplined cost management.

This is the central conflict for a potential investor. Are you buying a company whose best days are behind it, with its key growth engines sputtering? Or are you getting a diversified medical-tech leader whose management is already looking ahead based on a pipeline of new product launches? For a deeper look at what could drive a recovery, consider what might push BSX stock higher from here.

The appeal of this trade is that you don’t have to have the perfect answer today. You collect an income stream for your willingness to buy the shares at a significant discount, a price that builds in a margin of safety against further disappointment. The one thing to watch is the performance of those three challenged businesses: EP, WATCHMAN, and Urology. If they can stabilize and show a credible path back to growth, management’s 2027 optimism will look prescient; if they continue to slide, you’ll be glad you set your potential entry price so low.

Wondering whether another stock offers a better yield, or what this same trade would pay on a name you already like? You can screen the latest cash-secured put yields across the market for yourself. And if it is exposure to health care equipment as a whole you want, rather than this one name, a health care equipment ETF like VHT covers that single sector. Going broader than any one sector, to a quality-first mix across the whole market, is where the portfolio below comes in.

Where This Trade Fits A Bigger Plan

Selling a cash-secured put is a strategic way to generate yield now and engineer a cheaper entry on a stock you have actually researched. The catch sits in the trade itself: it is a single name, and if that name falls hard, you are the one left holding it. It is a good tool, not a whole portfolio.

That is where the Trefis High Quality (HQ) Portfolio comes in. It pairs the kind of active idea you just read about with a hands-off core of about 30 quality businesses, each chosen on the full weight of its fundamentals rather than a single setup, then sized and re-balanced with discipline. The result is a track record of outpacing a benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Run trades like this on top of a foundation that is not riding on any one of them.