How investor is staying with MarkWest

optionMONSTER

One investor wants to give MarkWest Energy more time to rally.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 10,000 November 72.50 calls for $2.10 and the sale of an equal number of August 72.50 calls for $0.05. The transaction was split into two large blocks in the first half of Friday's session.

Volume was below open interest in the August contracts, indicating that an existing long-call position was closed and rolled out in time. Making the adjustment cost the investor $2.05 and gave him or her an additional three months to benefit from upside in the natural-gas transportation stock. (See our Education section)

MWE rose 1.30 percent to $69.90 on Friday and is up 37 percent so far this year. The company is one of many domestic-energy names to run higher as oil and gas production ramps up within the United States.

The shares peaked at $71.46 in May and have been consolidating below that level since. The November 72.50s would provide potentially significant leverage to a breakout to new highs.

Total option volume was 8 times greater than average in Friday's session, with calls outnumbering puts by a bullish 163-to-1 ratio.


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