Phillips 66 attracts huge call spread
Chris McKhann | firstname.lastname@example.org
optionMONSTER systems show that 113,000 PSX options have traded, more than 5 times its daily average in the last month. Almost all of the action is in one three-way call spread.
A trader sold 20,000 January 48 calls for $5.10 and 24,747 January 49 calls for $4.20. The open interest at each strike was more than 40,000.
Second later, the trader bought 53,136 January 55 calls for the ask price of $1.15. That volume was twice the strike's open interest at the start of the session and therefore a new position.
This appears to be a roll of the in-the-money calls up to the higher out-of-the-money strike. The trader would be taking profits off the table while maintaining upside exposure. (See our Education section)
PSX is down 0.79 percent to $52.75 in afternoon trading but isn't far from the $53.58 close from Monday of last week, which was a high for the stock. Shares of the oil-refining and chemical company were below $29 in early May.