Marathon Petroleum Stock Could Decline This Much By Next Week

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said there was “well above average daily volumes” for energy stocks on Tuesday.

Marathon Petroleum Corp MPC traded more than three times its average daily put volume, which was mostly the result of some heavy activity in the December 10 weekly 60 puts, he added.

There were buyers of 8,271 puts at an average price of $1.91, which included a couple of institutional buyers. Traders are betting that the stock’s weakness will continue through the end of next week. They are expecting the stock to lose at least 5% by December 10.