OptionsHouse

Options Trading News

February 1, 2013  Fri 5:15 AM CT

PSX: SEE CHART GET CHAIN FIND STRATEGIES
Traders have been extremely active in Phillips 66 for months, and the bulls were back yesterday.

optionMONSTER's Heat Seeker system detected heavy buying in the March 65 calls, with some 5,500 contracts trading against open interest of just 612 contracts. The first blocks priced for $0.90, but premiums then climbed to $1 as the activity heated up.

Those long calls have locked in a $65 entry price on the red-hot oil refiner for the next 1-1/2 months, no matter how high the stock goes. The trader stands to generate some nice leverage in the event of a continued rally, but the contracts can also become worthless if it doesn't move. (See our Education section)

PSX fell 0.31 percent to $60.57 yesterday but is up 85 percent since getting spun off from ConocoPhillips last May. It's been climbing along with other refiners as an improving economy draws investors to the energy sector. Profit also beat expectations when the company reported earnings on Wednesday.

Total option volume was slightly above average in the name yesterday, with calls outnumbering puts by a bullish 4-to-1 ratio.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

PSX

Notable option activity in equities

August 24, 2015

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »