Today, we entered bullish call butterfly spreads on Blackstone (BX). The stock appears to be making a bearish to bullish reversal on the shorter-term charts. The bull case for Blackstone is that it continues to benefit from the massive growth in alternative investments like private credit, infrastructure, and real estate. As more institutional money flows into these areas, Blackstone’s assets under management and recurring fee income continue to grow. The company also has strong exposure to long-term trends like AI infrastructure and data centers, while paying an attractive dividend. The simple bull case is that BX keeps compounding earnings and cash flow as alternatives become a larger part of global investing. Buy to open: BX Aug 21st (monthly) 125.00 strike call (ratio of 1)
Sell to open: BX Aug 21st (monthly) 135.00 strike call (ratio of 2)
Buy to open: BX Aug 21st (monthly) 145.00 strike call (ratio of 1)
Debit: 1.40
Max risk = 1.40 or $140.00 per spread
Max reward = 8.60 or $860.00 per spread