Breakout Confirmed for Blackstone

Dear Reader,

This stock has been quietly make new 52-Week Highs the last three consecutive trading days, but according to my indicators it’s not too late to jump in. Today we will be looking at Blackstone Group Inc. stock symbol: BX.

Blackstone Inc. is an asset manager of alternative investments and a provider of financial advisory services globally. The company operates its businesses through four segments: Real Estate, Private Equity, Hedge Fund Solutions and Credit & Insurance.

Now, let’s look at the Daily Price chart below for BX.

BX on a Powerful ‘Buy’ Signal

50-Day EMA and 100-Day EMA ‘Buy’ Signal

The 50-Day Exponential Moving Average (EMA) and 100-Day EMA are moving average indicator lines that can provide buy and sell signals when used together. When the shorter-term 50-Day EMA crosses above or below the longer-term 100-Day EMA, this provides either a buy or sell signal depending on which direction the stock price is moving.

When the 50-Day EMA (blue line) crosses above the 100-Day EMA (red line) this indicates that the stock’s buying pressure has begun to outweigh the selling pressure signaling a ‘buy’ signal.

Now, as the chart shows, on June 14^th, 2023, the BX 50-Day EMA, crossed above the 100-Day EMA signaling a ‘buy’ signal. As you can see, the 50-Day EMA is still above the 100-Day EMA meaning the ‘buy’ signal is still in play.

As long as the 50-Day EMA remains above the 100-Day EMA, the stock is more likely to keep trading at new highs and should be purchased.

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Profit if BX is Up, Down, or Flat

Let’s use the Hughes Optioneering calculator to look at the potential returns for a BX call option spread.

For this option spread, the calculator analysis below reveals the cost of the spread is $293 (circled). The maximum risk for an option spread is the cost of the spread.

The analysis reveals that if BX stock is flat or up at all at expiration the spread will realize a 70.6% return (circled).

And if BX stock decreases 10.0% at option expiration, the option spread would make a 44.4% return (circled).

Due to option pricing characteristics, this option spread has a ‘built in’ 70.6% profit potential when the trade was identified*.

The prices and returns represented below were calculated based on the current stock and option pricing for BX on 9/16/2024 before commissions.

Option spread trades can result in a higher percentage of winning trades compared to a directional option trade if you can profit when the underlying stock/ETF is up, down or flat.

A higher percentage of winning trades can give you the discipline needed to become a successful trader.

The Hughes Optioneering Team is here to help you identify profit opportunities just like this one.

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