$BSX daily pick: sell Dec 18 $37.50 put (buy-side) after the Q3 guidance cut

$BSX: I'm selling the Dec 18 $37.50 put on @bostonsci after today's guidance cut and getting paid to wait.

As of midday ($42.24):
Hit $39.57 intraday (lowest since 2022) and sits 26% below the 200-day
Credit $0.70 for about 1.9% in 51 days (~13% annualized)
Breakeven $36.80, about 13% below today
About 13x the cut 2026 EPS guide

I think the cyberattack hit is fixable because Q3 sales still grew 1.5% to $5.14B and the CEO bought about $9M of stock at $48.33 in August.

Would you sell puts on Boston Scientific here or wait for 2027 to play out first?

Not financial advice

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Why a put and not shares? Management called 2027 a trough year with growth coming back in 2028. Q4 sales are guided down 1% to 3% and full-year adjusted EPS was cut to $3.16 to $3.18 from $3.28 to $3.32. I'd rather collect $70 and let it come to me under $37.50.

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Don't have $3,750 sitting in cash? Defined-risk version: sell the $37.50 put and buy the Dec 18 $35 put for about $0.35 credit. Max risk $215 and breakeven $37.15. You lose the full $215 if it's under $35 on Dec 18.

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Bear case: the Aug 25 cyberattack took about 300bp off Q3 growth and WATCHMAN sales fell 6%. The pending Penumbra deal may not close until early 2027. If the disruption drags on the trough could last longer than one year.

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What I'd watch: Q4 shipments getting back to normal and the Penumbra close. Last year's Q4 report came Feb 4 so this put expires well before the next print. Trailing free cash flow is about $3.6B (5.9% yield) and the Street target is about $59 with 37 Buys and 7 Holds for what it's worth.

Sources: Boston Scientific Q3 2026 results press release · Investing.com: BSX Q3 2026 earnings call transcript · Benzinga: Boston Scientific overshadowed by hackers, headwinds and lower guidance · MassDevice: BSX cuts guidance after cyberattack · Investing.com: Why is Boston Scientific stock sliding today · Reuters: BSX says cyberattack likely hurt 2026 sales, profit

Not financial advice. For informational and educational purposes only.