$BX call prices spike threefold

Option traders are turning large profits on bullish positions opened in Blackstone (BX) today.

On Oct. 24, our Unusual Activity tracking systems detected the purchase of 5,000 March $48 calls for $5.75 as part of a bullish roll above open interest of 240 contracts with shares at $51.71.

Those calls were last marked for $15.55 this session, nearly 3 times their purchase price. The stock rose 23.24% in the same time frame, underscoring how options can far outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

BX was last trading for $63.75 up 1.4% on the session and at a new all-time high for the asset-management firm, which will report earnings on Jan. 30 before the market opens.