Blackstone Group has been trending higher, and one investor it looking for the upside to continue.
optionMONSTER's Heat Seeker tracking program detected the purchase of 7,300 January 2014 22 calls, most of which priced for $1.12. Volume is more than 800 times open interest in the strike.
BX is trading at $16.58, up 1.28 percent today and 35 percent in the last two months. The private-equity firm has been melting up along with other financials as investors regain confidence in the sector and asset prices.
Today's call buying reflects a long-term vote of confidence in the company and a belief it will continue to rally. The options have a delta of 0.28, meaning that they will appreciate at least $0.28 for every $1 that BX moves. (See our Education section)
The 7,300 purchased contracts is the equivalent of controlling about 2 million shares. Buying that much stock would have cost more than $3 million. Using the calls, that outlay was reduced to less than $820,000.
Overall option volume is almost twice the average amount so far today, with calls outnumbering puts by 39 to 1.
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