Mike Khouw Sees Unusual Options Activity In Marathon Petroleum
The daily options trading volume was over four times average volume and the September 90 calls were the most active.
Investors paid $1.70 for this strike which places the break-even at $91.70 or roughly five percent higher from the current market price of $87.43. Mike Khouw thinks that one of the reasons for this trade is a good earnings result, posted in July, which came above the expectations.
The valuation looks attractive because the stock is trading at less than 10 P/E and 5 EV/EBITDA. The main reason for a long position in Marathon Petroleum is the crack spread which is currently trading at the three month high.
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