Bulls see green in Blackstone Group

By David Russell,

Shutterstock photo

The bulls think Blackstone group is going to keep on running.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 28,000 March 16 calls for $0.96 and the sale of an equal number of March 17 calls for $0.59. Volume was more than 80 times open interest at both strikes.

This bullish call spread cost $0.37 and will earn a maximum profit of 170 percent if the stock closes at or above $17 on expiration next spring. That's less than 12 percent above its closing price Friday, which exemplifies the leverage of options. (See our Education section)

BX rose 5.11 percent to $15.22 and is up 24 percent in the last three months. The gains have accelerated in the last week as the Federal Reserve's promise to buy mortgage securities triggered a feeding frenzy in beaten-down financial stocks.

The company runs private-equity and real-estate funds, which will benefit from improving confidence and higher asset prices.

Overall option volume was 32 times greater than average in the name, with calls outnumbering puts by more than 20 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: BX

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