Market Overview

Mike Khouw Sees Unusual Options Activity In Marathon Petroleum

Related MPC
Benzinga's Top Initiations
10 Notable Stocks Trading Ex-Dividend Monday, August 15

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!