Marathon Petroleum has had a rough month along with other oil refiners, but a large trade is looking for the stock to hold current levels.
More than 15,000 April 62.50 puts were sold this morning, led by a print of 13,686 that went for $5.90, according to optionMONSTER's tracking systems. This is clearly a new position, as open interest in the strike was a mere 84 contracts before the trade appeared.
The put seller is looking for MPC to stay above $62.50 through mid-April 2014. If it falls below that level, the trader will be on the hook to buy shares for an effective price of $56.60 when the credit from the put sale is included. (See our Education section)
MPC is down 1.34 percent to $64.04 today. The stock fell steadily after starting the month near $74 but has been trying to find support in recent days.
The big put sale has pushed total option volume in MPC to 16,000 contracts, already more than 4 times its full-session average for the last month.
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