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May 9, 2013  Thu 11:08 AM CT

MWE: SEE CHART GET CHAIN FIND STRATEGIES
One investor is adjusting a bullish trade in MarkWest Energy Partners, which has gone straight since November.

optionMONSTER's Heat Seeker monitoring program detected the purchase of some 11,000 August 67.50 calls for $1.60 and the sale of some 10,400 August 62.50 calls for $3.70. Volume was below open interest in the 62.50s, which suggests that an existing long position was closed and rolled to the higher strike.

He or she collected a credit of $2.10, which probably represents their initial investment in the calls. They remain exposed to further upside, but are now risking only profits. (See our Education section for more on how options can be used to manage trades.)

MWE is up 2.29 percent to $64.73 this afternoon and 27 percent so far this year. The pipeline stock broke above its previous all-time high from 2012 in late April and has been consolidating since. Based on today's activity, the investor thinks that it will keep on running.

Pipelines have emerged as a major group within the energy sector as the domestic production surges within the United States.

Total option volume is quadruple the daily average in MWE, according to Heat Seeker. Calls outnumber puts by 54 to 1.
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So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

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