Trader counts on floor under Phillips 66
Chris McKhann | [email protected]
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.