Blackstone Group LP (BX) 11/20/09 PriceWatch Alert Support At Around $14.85

Posted: Friday, November 20, 2009 8:40 AM EDT
By: Market Intelligence Center Staff

Blackstone Group LP (NYSE: BX) closed yesterday at $15.28. So far the stock has hit a 52-week low of $3.55 and 52-week high of $17.22. Blackstone Group stock has been showing support around 14.85 and resistance in the 15.67 range. Technical indicators for the stock are Bullish. BX appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jun '10 14 covered call (BX FN) for a net debit in the $12.48 area. That is also the break even stock price for this trade. This covered call has a 211 day duration, provides 18.32% downside protection and a 12.18% assigned return rate for a 21.07% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the BX Jan '11 10 Call (XJM AB) and selling the Jun '10 14 call (BX FN) for a $3.10 debit. The trade has a 211 day life and would provide 14.27% downside protection and a 29.03% assigned return rate for a 50.00% annualized return rate (for comparison purposes only). Blackstone Group has a current annual dividend yield of 7.85%. [FBB-Seven Summits Research]