Refineries remain hot with Phillips 66
Pete Najarian | [email protected]
optionMONSTER's Heat Seeker tracking system showed heavy activity in the January 60 calls, with about 27,000 trading in volume well above the previous open interest of 3,841 contracts. The largest block priced for $0.70.
Long calls lock in the price where traders can buy shares, so these options can provide significant leverage when the stock goes up. But if the shares don't move, the calls will expire worthless. (See our Education section)
PSX closed at $53.58 yesterday, up 2.37 percent on the session and 67 percent in the last six months. As the refiners keep rolling, the beta trade has focused like a laser on a few specific names like this one.
Calls outnumbered puts by 46,000 to about 7,500, a reflection of yesterday's bullish sentiment.
(A version of this post appeared on InsideOptions Pro yesterday.)