How investor is staying with MarkWest

By
A A A

One investor wants to give MarkWest Energy more time to rally.


optionMONSTER's Heat Seeker monitoring system detected the purchase of about 10,000 November 72.50 calls for $2.10 and the sale of an equal number of August 72.50 calls for $0.05. The transaction was split into two large blocks in the first half of Friday's session.

Volume was below open interest in the August contracts, indicating that an existing long-call position was closed and rolled out in time. Making the adjustment cost the investor $2.05 and gave him or her an additional three months to benefit from upside in the natural-gas transportation stock. (See our Education section)

MWE rose 1.30 percent to $69.90 on Friday and is up 37 percent so far this year. The company is one of many domestic-energy names to run higher as oil and gas production ramps up within the United States.

The shares peaked at $71.46 in May and have been consolidating below that level since. The November 72.50s would provide potentially significant leverage to a breakout to new highs.

Total option volume was 8 times greater than average in Friday's session, with calls outnumbering puts by a bullish 163-to-1 ratio.



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

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



This article appears in: Investing , Options

Referenced Stocks:

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

86,904,687
  • $15.56 ▼ 1.46%
86,854,347
  • $7.62 ▼ 1.93%
85,075,754
  • $27.25 ▼ 0.11%
49,181,594
  • $124.75 ▼ 1.13%
48,007,815
  • $8.79 ▲ 1.27%
41,460,304
  • $58.42 ▼ 2.09%
41,296,100
  • $41.615 ▼ 1.29%
40,272,476
  • $106.01 ▼ 1.56%
As of 4/17/2015, 04:15 PM


Find a Credit Card

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