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Mike Khouw Sees Unusual Options Activity In Marathon Petroleum

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Mike Khouw Sees Unusual Options Activity In Marathon Petroleum

On CNBC's "Options Action," Mike Khouw said Marathon Petroleum Corp (NYSE: MPC) has seen a lot of call activity over the last 20 days and the open interest in calls outpaces the open interest in puts by about three to one. On Monday, he saw a little over two times the average daily trading volume in Marathon Petroleum and most of that was related to call activity.

During the session, Khouw noticed a purchase of 15,000 contracts of the January $35/$40 call spread at $1.04. The trade breaks even at $36.04 or 15.33% above the closing price on Monday. If the stock jumps to $40 or higher, the trade is going to reach its maximal profit of $3.96.

 

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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media