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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. 
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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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