Blackstone Faces Cautious Trades

Traders are cautious as Blackstone Group advances.

optionMONSTER’s Depth Charge monitoring program detected the purchase of 10,000 January 28 puts against previous open interest of just 1,041 contracts. They initially fetched for $0.63, but then premiums inched higher and the largest block priced for $0.70.

Puts lock in the price where shares can be sold in the private-equity firm. Investors can hold them alongside the stock as insurance, limiting losses while giving them free rein to run higher. Alternatively, they can be used as a surrogate for short selling.

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