Options Trading News

May 21, 2013  Tue 12:20 PM CT

Call buyers are making a fortune in MarkWest Energy.

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.
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