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September 12, 2012  Wed 4:16 AM CT

Option paper continued to flow in Phillips 66 yesterday as oil refinery stocks remain active.

The January 55 calls traded for $0.60 and $0.65, with more than 10,000 crossing our Heat Seeker tracking system. Those options lock in the purchase price of the stock, so they can generate some nice leverage if the stock rallies. If it doesn't, the calls will expire worthless in mid-January. (See our Education section)

PSX rose 2.36 percent to $45.59 yesterday and is up 40 percent in the last three months. Spun off from ConocoPhillips earlier this year, PSX is an independent energy company engaged in oil refining and marketing.

Total option volume in the name exceeded 18,000 contracts, nearly 4 times its daily average. Fewer than 1,500 of those were puts, a reflection of the upside bias.

Yesterday's bullish activity also came one session after similar trading in Hess.

(A version of this post appeared on InsideOptions Pro yesterday.)
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