OptionsHouse

Options Trading News

June 13, 2013  Thu 9:49 AM CT

MRO: SEE CHART GET CHAIN FIND STRATEGIES
A large trade is betting that shares of Marathon Oil will see a sharp move up or down in the next four months.

optionMONSTER systems show that one block of 6,000 October 34 calls was sold for the bid price of $2.20. The volume was 6 times the strike's previous open interest, so this is a new position.

Just before that trade, 300,000 MRO shares changed hands for $34 even. The combination of stock and options creates a delta-neutral play that is looking for higher volatility in the shares rather than a specific direction. (See our Education section)

MRO is up 1.23 percent to $33.82. The energy company was at a high above $46 on May 20 but below $30 a month earlier.  The 20-day historical volatility for MRO is at 25 percent, in the middle of its recent range, while the average implied volatility is near 52-week highs at 32 percent.

More than 7,300 MRO options have traded so far today, twice its full-session average in the last month.
Share this article with your friends


Related Stories

MRO

Investor keeps rolling in Marathon Oil

September 9, 2016

The oil and natural-gas producer has rallied 10 percent in the last month, and one trader is extending a bullish position in the name.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »