Marathon Oil trade looks for big move
Chris McKhann | [email protected]
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.