Earn 9.6% Today or Buy BSX 30% Cheaper – It’s a Win-Win
At about $62.82 a share, Boston Scientific (BSX) is trading about 42% below its 52W high.
Do you think BSX stock is a good long-term bet at current levels? What about at a 30% discount at about $45 per share? If you think that is a steal, and have some cash ready to go, here is a trade.
9.6% annualized yield at 30% margin of safety, by selling Put Options.
- Sell a long-dated Put option expiring 3/19/2027, with a strike price of $45
- Collect roughly $240 in premium per contract (each contract represents 100 shares)
- That’s about 5.6% annualized yield on the $4,500 you’re setting aside for the possibility of buying the stock
- This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 9.6%
- And you give yourself a chance to buy BSX stock at deep discounted price of $45
However, this is not the only stock strategy in town. Trefis High Quality Portfolio is a sophisticated framework designed to reduce stock-specific risk while giving upside exposure.
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- Pay Less, Gain More: DXCM, BSX Top IDEXX Laboratories Stock
- Stress Testing BSX: Historical Drawdowns and Macro Risks
- Stress Testing BSX: Historical Drawdowns and Macro Risks
Possible Trade Outcomes: You Win Either Way
| Stock Price Outcome | What It Means For You |
|---|---|
| BSX stays above $45 | You keep the full $240 premium – 5.3% extra income over the next 351 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash. |
| BSX closes below $45 | You’ll be obligated to buy 100 shares at $45. But thanks to $240 premium, your effective cost basis is just $42.6 per share – a roughly 32% discount from current level. |
But to hold this trade with conviction, you want to see long term upside in the stock. Because if it comes to it, you want to be excited about buying the stock cheap.
Check out Buy or Sell BSX Stock and Boston Scientific Investment Highlights
If you are not comfortable with options or stock-specific trades, Portfolios are the way to go as they can protect and grow wealth even better.
Portfolios Are The Smarter Way To Invest
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.