Investors in Blackstone Group LP (BX) saw new options begin trading this week, for the December 20th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the BX options chain for the new December 20th contracts and identified one put and one call contract of particular interest.The put contract at the $30.00 strike price has a current bid of $2.37. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $30.00, but will also collect the premium, putting the cost basis of the shares at $27.63 (before broker commissions). To an investor already interested in purchasing shares of BX, that could represent an attractive alternative to paying $32.26/share today.
First Week of BX December 20th Options Trading
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