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September 24, 2009 6:56 EDT Related Symbols: BAX
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
ONN.tv analyzes Jim Cramer’s take on Baxter International and corresponding option trades.
BAX: Winning and Losing Plays in Baxter International
ONN.tv analyzes Jim Cramer’s take on Baxter International and corresponding option trades.
Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick –Baxter International (BAX):
In a July 20 broadcast of Mad Money, host Jim Cramer said, “While the market doesn’t seem to like health care right now,” he does think Baxter International (BAX) could be a great part of any diversified portfolio. BAX shares are now trading at $58.36, up from $54.17 toward the end of July.
Bullish Option Traders on BAX:
Bullish investors looking for a pop in BAX shares sold Sept. 52.5 puts for $1.40 and bought Sept. 47.5 puts for 40 cents. Investors collected $1 on this spread, which expired at $0. This trade was a winner of $1, with the stock up $4.19.
Bearish Option Traders on BAX:
Investors who expect to see further downside in BAX shares sold Nov. 55 calls for $2.70 and bought Nov. 65 calls for 30 cents. Investors collected $2.40 on this spread, which is now marked at $4.20. This bearish play was a loser of $1.80 with the stock up $4.19.
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