$BX bulls hit a winner again

Option traders doubled their money once again in upside call positions on Blackstone (BX) as its shares have continued to notch multi-year highs.

On June 7, Investitute’s market scanners identified the purchase of 5,700 July $43 calls for $0.85 to $0.98 with shares at $41.99. This was clearly a new position, as open interest in the strike was a mere 404 contracts before that session began.

Those calls traded for as much as $2.06 today, more than twice their purchase prices. The stock rose 7% 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 third winning trade in the name posted on Investitute within the past month.

BX closed up 2.28% to $43.95 today, just off its high of $44.00. The financial manager has rallied sharply since announcing on April 18 that it will convert to a corporation from a partnership.