OptionsHouse

Options Trading News

March 20, 2013  Wed 3:47 AM CT

BX: SEE CHART GET CHAIN FIND STRATEGIES
The Blackstone Group attracted a large bullish trade even as the financial-management firm's shares fell yesterday.

optionMONSTER's Heat Seeker system shows that a trader bought 15,500 January 25 calls for the ask price of $0.62 and, seconds later, sold the same number of January 30 calls for the bid price of $0.11. The volume was more than 5 times the previous open interest at each strike, so this is clearly new activity.

The resulting vertical spread cost $0.51 to open, or a total of $790,500. The maximum gain of $4.49, or $6,959,500, would be realized if BX is above $30 at the expiration early next year. (See our Education section)

BX finished the day at $20.08, down 1.52 percent. Shares hit a high of $21.09 on Friday.

More than 42,000 BX options traded on the day, compared to a daily average of 14,000 in the last month. Calls outpaced puts by more than 10 to 1. 
Share this article with your friends


Related Stories

BX

Blackstone faces downside spread

May 8, 2015

The private-equity and financial-advisory firm has benefited from strong fees and appreciation of its assets under management.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Short synthetic stock

With the use of the calls and puts we can not only create Long Synthetic Stock, but Short Synthetic Stock as well...

View more education articles »