If there are traders who doubt that 2013 and possibly 2014 are going to be a good year for LBO?s, I think a customer buying BX Jan 2015 calls would like to have a word with you.
A customer closed a portion of an open position on the Jan 2014 calls selling 13,600 of them at 4.45.? Based on the open interest these are a close, regardless, the customer is using the calls as an alternative to stock.
The customer then bought 115,000 of the Jan 2015 30 calls paying .up to .425, in what appears to be another case of using leverage to create leverage.? These calls need BX to increase by 50% to start threatening to be in the money, something that would require a lot of growth in the private equity space, or a merger.
IV in BX is down slightly today, and one can piggy back this customer.? Although I would look at using this trade to create a call spread.? The 25/30 call spread in 2015, now has a forward skew and can be put on for a very favorable price of about .50