Buy Put BX

December 16, 2022
Sell Half of Existing Position: Sell Half of the Blackstone (BX) March 80 Puts for $10 or more.

Blackstone (BX) is breaking down to a new recent low as the market is under pressure again this morning. While I think the odds favor BX stock heading lower, especially given the overwhelming bearish option activity, I am also open to the stock and the market rebounding. Because of that uncertainty, let’s lock in a profit on half of our puts of approximately 27%.

To execute this trade you need to:
Sell to Close Half of your BX March 80 Puts

We will hold the balance of this position looking for greater profits.

December 5, 2022
Half Position: Buy the Blackstone (BX) March 80 Puts (exp. 3/17/2023) for $8.30 or less.

Put buying activity is once again ramping up in Blackstone (BX) as the stock is under pressure. Here are the trades from today:

Buyer of 10,000 Blackstone (BX) February 70 Puts for $2.70 – Stock at 83

Buyer of 4,000 Blackstone (BX) March 80/65 Bear Put Spread for $4.40 – Stock at 83.5

Buyer of 10,000 Blackstone (BX) January 70/60 Bear Put Spreads for $1.18 – Stock at 81.5.

This follows reports last Thursday that Blackstone’s $69 billion real estate fund would limit redemption requests after breaching limits this quarter.

While BX stock could bounce back, and we aren’t “early” to the stock’s decline, this bearish option activity is too ominous for me to not get involved. Also, BX largely moves with the market, so this put buy could prove to be a good market hedge (maybe).

To execute this trade you need to:
Buy to Open Half of a position of the BX March 80 Puts

The most you can lose on this trade is the premium paid, or $830 per put purchased.

The reason I am only buying half of a position today is these puts are not cheap. Also, as noted above, BX has been under pressure for the past two weeks, so we aren’t early to the stock decline.

That being said, the put buying is so strong, and the stock is so weak, that I think buying half of a position is a good risk/reward play.