Traders see limit to Marathon's slide
Chris McKhann | [email protected]
optionMONSTER systems detected heavy selling in the June 70 puts, with big blocks going for the bid price of $1.60 yesterday. The volume at that strike was 15,508, clearly new positions because open interest in the strike was a mere 19 contracts before the session began.
The put selling represents a bet that MPC will hold above $70 by expiration in mid-June. The traders will face the obligation to buy shares if they fall below that strike price. (See our Education section)
MPC dropped 6.24 percent to end yesterday's session at $73.47, its lowest close since January. The oil-refining company had traded as high as $92.73 in late March.
More than 29,000 MPC options changed hands on the day, compared to a daily average of 3,400 in the last month.