Boston Scientific (BSX, news, chart, volatility) Jan-10 $10 calls and $7.5 puts saw increases in open interest of roughly 10,000 contracts, after a block of 10K calls hit bid-side for $1.00 and (two blocks of 5K) puts mid-market for $1.70 and $1.75 midday Friday. A block of 800K BSX shares also traded, for $7.75.

Taken together, the options activity looks a lot like a massive collar on BSX. If so, this strategist paid roughly $8.5 per share ($7.75 + $1.75 - $1.00) and has limited downside (11.8 percent) to the strike price of the puts. The upside through expiration is also limited due to the calls. If assigned, the strategist sells the stock for $10 and a 17.7 percent profit.