Blackstone has pulled back from multi-year highs reached last month, but one trader apparently believes that any further downside will be limited.
optionMONSTER's Depth Charge system shows that a trader bought 3,222 June 21 puts for the ask price of $0.15 in volume below existing open interest of 9,486 contracts. At the same time, he or she sold 3,222 July 20 puts for $0.35, below the listed bid price at the time, in volume well above that strike's open interest of 1,378, so this was a new position.
The trader is rolling a short-put position forward, betting that BX will hold above $20 in the next month. If the stock is below that level, the trader will face the obligation to buy the shares at an effective price of $19.65. (See our Education section)
BX is down 0.85 percent to $21.41 today. The private-equity firm reached $23.80 on May 21, its highest price since December 2007, and has touched $20 only once in the last two months.
More From optionMONSTER
- Largest option buying in equities so far
- Index, ETF option volumes near midday
- Cramer: One step over the LINE
- Investment & Company Information