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Blackstone seen holding broad gains

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Blackstone is hovering at its highest levels in more than five years, and one trader apparently believes that any downside will be limited in the private-equity firm.

optionMONSTER's tracking systems detected the sale of 3,250 June 21 puts in 1 minute this morning, led by a print of 2,792 that went for $0.24. This is clearly a new position, as it was well above the strike's open interest of 1,758 contracts before the trade appeared.

The put seller is looking for BX to stay above the $21 strike price until those contracts expire five weeks from tomorrow. If it falls below that level, the trader will face the obligation to buy shares at an effective price of $20.76 when the $0.24 credit from the put sale is included. (See our Education section)

BX is up 0.86 percent this morning to $22.83 after reaching $23.30 on May 7, its highest price since January 2008. The stock has risen more than 40 percent since beginning 2013 at the $16 level.

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