Phillips 66 has soared more than 55 percent since going public in the spring, and one trader is betting that the stock will retain the bulk of those gains for the next month.
optionMONSTER's tracking systems have found heavy selling in the January 44 puts, which have seen more than 4,000 contracts change hands as premiums dropped from $0.20 to $0.10. The volume was twice the strike's open interest of 2,006 at the beginning of the day, indicating that this is new activity.
The put sellers are looking for PSX to stay above the $44 strike price upon the January expiration four weeks from tomorrow. The traders also face the obligation to buy the stock if it is below this level at that time. (See our Education section)
PSX is down 0.82 percent to $52.07 in early afternoon trading. Shares bounced off support near its 52-week low around $29 at the start of June and rocketed higher for the next seven months. The stock hit intraday peak of $54.32 on Dec. 10 and has been trading sideways between about $52 and $54 since then.
The oil-refining company has been a consistent target for option activity since it was spun off from ConocoPhillips in mid-April. Just yesterday the name attracted a large call spread.
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