Q2 STOCKS TO BUY

Blackstone's Profit Jumps 63% Despite This Quarter's Challenges

Options bulls are targeting BX in response

Deputy Editor
Apr 21, 2022 at 10:28 AM
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Blackstone Inc (NYSE:BX) reported better-than-expected first-quarter results, with earnings soaring 63%, as its real estate and credit businesses gave profits a boost. CEO Stephen Schwarzman said this quarter "represented one of the best in Blackstone's 36-year history despite an extremely challenging market backdrop." 

Despite this, BX has erased its early morning gains and was last seen down 1% at $119.14. Earlier, however, the stock was trading as high as $126.80. BX has had a volatile past few months, trading within a wide range on the charts, and is down 7.9% year-to-date. The stock's 320-day moving average still lingers below as support, however, as it has since November of 2020. 

Call traders are targeting the investment firm after the news. So far, 11,000 calls have crossed the tape, which is four times the intraday average and roughly six times the amount of puts traded. The weekly 4/22 130-strike call is the most popular, with new positions being sold to open there. 

Options traders are in luck, too, as BX's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 91 out of a possible 100, meaning the stock has exceeded options traders' volatility expectations in the last 12 months.

 
 

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