OptionsHouse

Options Trading News

December 13, 2012  Thu 9:28 AM CT

PSX: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


Related Stories

PSX

What's behind put spike in Phillips 66

February 9, 2016

The oil-refining company is down 19 percent in the last three months, and one big put buyer is positioning for more downside potential.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »