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 gets vote of confidence

August 9, 2016

The private-equity firm has been trying to bottom all year.

OptionsHouse

Premium Services

Education & Strategy

Dissecting a big institutional trade

This week's column will study a recent call ratio spread. We're not recommending using this strategy because it has potentially huge risk. But we can learn from this different use of options by a large institutional investor.

View more education articles »