Oil refiner Phillips 66 hasn’t been around for long, but the bulls are already smitten.
OptionMonster’s tracking systems detected the purchase of 2,500 January 45 calls yesterday for $1.05 against open interest of just 157 contracts. Later in the session, a staggering 25,000 January 49s were traded for $0.55 and $0.60 as the buying continued.
Calls(explain this) lock in the price investors must pay to own a stock. They can generate major leverage if it moves in the correct direction, but also run the risk of expiring worthless if no rally occurs.