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Jud Pyle analyzes options action in Blackstone, Simon Properties and Procter & Gamble during the first hour of trading.
BX shares are now trading up seven cents to $15.36, which is a couple dollars off the company’s 52-week high. Blackstone announced Tuesday that it bought $7.8 million in Southwest Airlines (LUV). The March 18 calls have traded more than 5,600 times for around 99 cents. Implied volatility has contracted slightly, as the December 15 straddle is trading at $1.85, and closed last night at $1.87.
Take-over chatter in SPG says the company hired Lazard to assist in its bid for General Growth Properties (GGWPG), and the stock is currently up $1.63, or 2.2%, to $73.81. The December 70 puts have traded 4,300 times for around $2.20, and the December 65 puts traded 4,000 times for around 85 cents. The December 75 straddle is trading at $6.93, compared to yesterday’s December 70 straddle at $7.28.
PG shares are down 12 cents to $62.19, and the company did not report any notable news today. The December 60 puts have traded 8,800 times for around 50 cents, which is the ask price. The December 62.5 straddle is trading at $2.45, and yesterday’s straddle closed at $2.49.
Higher returns with less capital. It’s called leverage and options have it—stocks don’t. Learn more:
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