Shares of Phillips 66 are coming off their highs from earlier this week, and one large trade is betting on a floor beneath the oil refiner's stock.
optionMONSTER systems show that more than 23,000 PSX options have traded, more than twice its daily average for the last month. The biggest print is in the February 50 puts.
A trader sold 5,000 of those contracts for $2.50. The volume was almost 10 times the strike's open interest at the beginning of the day, so this is a new position.
The put selling is based on the thesis that PSX will hold above the $50 strike price in coming months. The trader is also willing to buy shares on a continued pullback below that level. (See our Education section)
PSX is down 2.4 percent on the day at $51.78. It hit $54.32 on Monday and closed the session at $53.58, both new highs. There is support at $50, but shares broke through that level only two weeks ago.
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