An institutional trader is looking for a floor beneath shares of Marathon Oil as they retreat from six-month highs today.
MRO is down 0.91 percent to $31.68 after shares hit their highest levels since late August yesterday. Shares have been trending upward for the last three months since hitting a 52-week low of $19.13.
Option volume in the energy name has already exceeded 11,000 today, more than double its full-session average. optionMONSTER's systems show that one print of 9,000 January 2013 30 puts sold for the bid price of $3.85. The previous open interest at that strike was 1,673, so this is a new position.
The put selling is a bet that MRO will remain above $30 in the coming year. The trade also reflects a willingness to buy the shares below that level if they are assigned, at an effective price of $26.15. (See our Education section)
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