The bulls are betting that Marathon Petroleum still has room to run.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 10,500 July 90 calls for $3.40 and the sale of an equal number of July 100 calls for $1.13. Volume was more than 6 times open interest at both strikes.
At the same time, 10,500 April 75 calls were sold for $8.70 and a matching number of April 85 calls were bought for $2.75. Volume, however, was below open interest in both of those.
That indicates that an existing call spread was closed in April and rolled three months forward in time. The investor collected a credit of $3.86 million in the process, and has the right to collect an additional $10.5 million if the Ohio-based oil refiner closes at or above $95 on expiration.
MPC rose 2.72 percent to $82.74 yesterday and is up 67 percent in the last six months. Refiners have been one of the strongest groups on our researchLAB analytics tool in recent months, fueled by wide refining margins and an improving economy.
Total option volume was quadruple the daily average in the session, according to the Heat Seeker. Calls outnumbered puts by 11 to 1.
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