MarkWest traders collect huge gains

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Call buyers are making a fortune in MarkWest Energy.


Less than two weeks ago , optionMONSTER's Heat Seeker market scanner detected the purchase of some 10,000 August 67.50 calls for $1.60 as an investor rolled up a position from the August 62.50s. At the time, he or she collected a credit of $2.10.

The shares had just broken out to all-time highs and continued to advance after the trade appeared. The investor adjusted the position again today, selling 10,000 August 67.50s for $4 and buying an equal number of August 72.50 calls for $1.80. This time, the trader collected another $2.20 in premium and remain exposed to further gains . Given the number of contracts owned, the investor has already reaped about $4.3 million in profits.

MWE is up 0.35 percent to $69.08 this afternoon and 36 percent so far this year. It's been climbing along with other pipeline companies as the United States regains its place as a major energy producer and exporter. (See our researchLAB stock-classification schema for related names.)

Total option volume is quadruple the daily average so far in the session, with calls outnumbering puts by 23 to 1.



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: MWE

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