STJ – St. Jude Medical, Inc. – Options investors are buying put options on the medical devices maker ahead of its second-quarter earnings report scheduled to be released ahead of the opening bell on Thursday. St. Jude’s shares are currently down 2.35% at $34.80 as of 11:50 am (ET). Traders hedging potential share price erosion that is likely to occur should STJ’s earnings disappoint the Street on Thursday purchased roughly 1,800 now in-the-money puts at the August $35 strike for an average premium of $1.25 per contract. Put players are positioned to make money as long as St. Jude Medical’s shares fall another 3.00% from the current price of $34.80 to breach the effective breakeven point to the downside at $33.75 by expiration day in August. The increase in investor demand for put options on the stock and impending earnings lifted STJ’s overall reading of options implied volatility 12.1% to 31.49% by 11:55 am (ET).
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