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Write Puts Blackstone (BX)

My previous put in BX expired out of the money over the weekend.

music selection:  “Crumbling Down” — Go Betty Go

weigh-in:  213.2 (2.0)

Blackstone (BX) is an asset management company.  It is a little different that say T. Rowe Price or similar companies in that most of its clients are “accredited investors”.  They compete more with hedge funds than retail money managers.  They have access to large pools of capital that have long lock up periods so they can invest long term without fear of paying redemptions.  They have several highly profitable real estate funds that return over 18% a year.  Most retail investors can’t invest with them and enjoy these returns.  But you can invest in the parent company.  That’s what I’m doing today.

I sold BX170714P00033500 for 70 cents a share.  The trade will be in force for 40 days and yields 19.07% on an annualized basis while enjoying 2.64% downside protection.  If assigned, the underlying shares will yield 10.39% annually while allowing bonus income in the form of covered calls.  I sold 3 contracts and collected 210 in instant income.

Devour your prey raptors!

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