Bulls discover Phillips 66 after spinoff


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The bulls have discovered Phillips 66, which became an independent stock last week.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 3,000 January 35 calls, with the largest blocks pricing for $2.30 to $2.40. Volume was more than 40 times previous positioning in the strike.

The November 35s also drew buyers for $2. More than 1,100 of those traded against open interest of 286 contracts.

PSX fell 0.03 percent to $32.48 yesterday. It was spun off from ConocoPhillips on April 30, and inherited the "downstream" assets such as refineries, pipelines, and chemicals. The old COP will now focus on exploring for and producing energy.

Many analysts have argued that the new company is too cheap, saying it has growth opportunities in transportation and chemicals. Stocks often rally following spinoffs because their different various assets can be valued individually.

The name has averaged fewer than 3,000 contracts per session since it began trading, and yesterday's option total was more than twice that amount. Calls outnumbered puts by 15 to 1, according to the Heat Seeker.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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