Shares of Blackstone aren't far off their lows, and one trader sees limited upside in the private-equity company.
BX is down 2.24 percent to trade at $12.26, in the middle of its recent range but not far off support at $11.50 that is the lowest level since October. Shares were trading above $17 in early February.
optionMONSTER systems show that 9,000 August 13 calls have traded, virtually all of them sold, with a big block of 7,895 going for $0.44. There was no open interest as this is a new strike, so today's trading represents new activity.
If the calls were sold naked, the trade has an initial bearish bias but can profit with the stock anywhere below $13.44. If they were sold against stock in a covered call position--the most popular option strategy on the market--the trader takes a maximum profit at or above $13 but will not participate in any upside above that level. (See our Education section)
A total of 12,000 BX contracts have traded so far today, compared to a daily average of 1,700.
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BX
Blackstone seen holding broad gains
May 16, 2013
Shares of the private-equity firm are hovering at their highest levels in more than five years, and one trader apparently believes that any downside will be limited.
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