Huge call position targets Blackstone
Chris McKhann | [email protected]
optionMONSTER systems show that 115,000 January 2015 30 calls were bought in two blocks of 53,040 for $0.42 and $0.43, far above the strike's previous open interest of just 948 contracts. Less than a minute earllier, a block of 13,600 January 2014 15 calls was sold for $4.45 in volume below the open interest of more than 48,000.
This appears to be a roll, with the trader selling the deep in-the-money 15 calls and using the proceeds to buy a much larger position in the farther-out 30 long calls. (See our Education section)
BX closed yesterday down 0.83 percent to $19.15 after peaking at $19.69 in the morning, its highest level since May 2008. Shares have been running up from support at $11.13 reached last May.
Total option volume in BX topped 139,000 contracts, twice its daily average in the last month.