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Blackstone bulls expecting more

Pete Najarian (ask-pete@optionmonster.com)

Option activity in Blackstone shows up frequently on our scanners, and the bulls returned to the name yesterday.

Early buyers paid $0.63 for the August 22 calls, according to optionMONSTER's tracking programs. They came back repeatedly through the day, driving premiums as high as $0.75. Almost 6,000 contracts traded against previous positioning of just 1,155, clearly indicating new activity.

Long calls lock in the price where shares can be purchased in the private-equity firm, letting investors cheaply position for a rally. They can also generate some nice leverage if the stock runs higher. (See our Education section)

BX rose 2.93 percent to $21.79 yesterday, almost $2 below its 52-week high. Yesterday's option paper was also focused on July contracts, so traders are definitely looking for a move before the end of the summer.

Overall calls in the name outnumbered puts by 12,700 to 4,400. Total option volume was almost triple the daily average.

Disclosure: I own BX calls.

(A version of this post appeared on InsideOptions Pro yesterday.)

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