Bulls want to stick with Phillips 66

By David Russell,

Shutterstock photo

Phillips 66 has been rallying, and one investor is looking for the gains to continue.

optionMONSTER's Heat Seeker detected the purchase of 2,000 November 39 calls for $2.05 and the sale of an equal number of August 33 calls for $5.04. Volume was below open interest in the Augusts, but not November, which indicates that an existing position was closed and rolled to the higher strike.

The investor collected a credit of $2.99 and has an additional three months to benefit from upside in the share price. He or she probably recovered more than their initial investment and is now looking to earn further profits "with the house's money."

PSX is up 1.3 percent to $38.14 this afternoon and 14 percent in the last month. Some investors doubled their money on that move using the August 38 calls. The oil refinery has only existed as an independent company since April, when it was spun off from ConocoPhillips.

Overall option volume is twice the daily average so far in the session, with calls outnumbering puts by 12 to 1.

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

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: PSX

More from optionMONSTER




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com