MarkWest traders collect huge gains
David Russell | [email protected]
Less than two weeks ago, optionMONSTER's Heat Seeker market scanner detected the purchase of some 10,000 August 67.50 calls for $1.60 as an investor rolled up a position from the August 62.50s. At the time, he or she collected a credit of $2.10.
The shares had just broken out to all-time highs and continued to advance after the trade appeared. The investor adjusted the position again today, selling 10,000 August 67.50s for $4 and buying an equal number of August 72.50 calls for $1.80. This time, the trader collected another $2.20 in premium and remain exposed to further gains. Given the number of contracts owned, the investor has already reaped about $4.3 million in profits.
MWE is up 0.35 percent to $69.08 this afternoon and 36 percent so far this year. It's been climbing along with other pipeline companies as the United States regains its place as a major energy producer and exporter. (See our researchLAB stock-classification schema for related names.)
Total option volume is quadruple the daily average so far in the session, with calls outnumbering puts by 23 to 1.