Marathon Oil seen holding recent gains
Mike Yamamoto | email@example.com
optionMONSTER's systems detected the sale of more than 12,000 October 29 puts, including a single print of 11,054 for $0.29. This is clearly new positioning because open interest in the strike was just 2,446 at the start of the session.
MRO is up 0.36 percent to $30.45 this morning as shares of the oil and natural-gas drilling company consolidate in an increasingly tight range. After falling from its 52-week high of $35.49 reached in late February, the stock bottomed near $23 in mid-June and has stair-stepped higher since then.
The put sellers apparently believe that MRO will be above the $29 strike price by expiration in less than a month. The traders face the requirement to buy shares if they are below that level for an effective price of about $28.71.
The company met second-quarter earnings estimates and beat revenue projections on Aug. 1. Two weeks later traders bought calls at the same October 29 strike that drew today's put selling, a further sign of support for the company. (See our Education section)