$BX bulls log another win

Option traders doubled their money on upside positions in Blackstone as its shares continued to notch multi-year highs.

On April 22, Investitute’s market scanners identified the purchase of 3,000 September $43 calls for $0.71 as part of a bullish spread with shares at $39.62. This was clearly a new position, as open interest in the strike was a mere 72 contracts before that session began.

Thoes calls traded for as much as $1.42 today, twice their purchase price. The stock rose 5.43% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

It is the second winning trade in the name posted on Investitute in as many days.

BX reached $41.84 this afternoon, its highest price since 2015, before finishing the session up 2.93% to $41.80. The financial manager has rallied sharply since announcing on April 18 that it will convert to a corporation from a partnership.