Interesting BX Put And Call Options For August 29th

Investors in Blackstone Group LP ( BX) saw new options become available today, for the August 29th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the BX options chain for the new August 29th contracts and identified one put and one call contract of particular interest.

The put contract at the $30.50 strike price has a current bid of 76 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $30.50, but will also collect the premium, putting the cost basis of the shares at $29.74 (before broker commissions). To an investor already interested in purchasing shares of BX, that could represent an attractive alternative to paying $32.25/share today.

Because the $30.50 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.49% return on the cash commitment, or 18.19% annualized — at Stock Options Channel we call this the YieldBoost.

START SLIDESHOW:
Top YieldBoost Puts of the S&P 500 »

Below is a chart showing the trailing twelve month trading history for Blackstone Group LP, and highlighting in green where the $30.50 strike is located relative to that history:

If you liked this article you might like

Yes, Blackstone Billionaire CEO Schwarzman Still Whispers Things to Trump

Top 5 Things I Learned After Spending the Day With Billionaire Investors

Blackstone Could See $3 Billion Windfall With Vivint IPO or Sale

Apple Is the Tom Brady of Stocks: Cramer's 'Mad Money' Recap (Thursday 8/31/17)

Boeing, Pure Storage, Activision Blizzard: 'Mad Money' Lightning Round