Market Overview

Mike Khouw Sees Unusual Options Activity In Marathon Petroleum

Share:
Related MPC
10 Stocks With Highest Close In Three Weeks
10 Stocks With Three-Day Increasing Volume
How ETF Investors Can Play An Oil Rally After OPEC Deal Raises Hopes (Investor's Business Daily)

Speaking on CNBC's Options Action, Mike Kouw said that there was an increased options activity in Marathon Petroleum (NYSE: MPC).

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.

Posted-In: Mike Khouw Options ActionCNBC Long Ideas Fast Money Options Media Trading Ideas

 

Related Articles (MPC)

View Comments and Join the Discussion!