GO
Loading...

Refinery Bulls Return to Phillips 66

Option trades continued to flow in Phillips 66 yesterday as oil refinery stocks remain active.

The January 55 calls traded for $0.60 and $0.65, with more than 10,000 crossing OptionMonster’s real-time tracking systems. Those options lock in the purchase price of the stock, so they can generate some nice leverage if the stock rallies. If it doesn’t, the calls will expire worthless in mid-January.

Phillips 66 shares rose 2.36 percent to $45.59 yesterday and are up 40 percent in the last three months. Spun off from ConocoPhillips earlier this year, Phillips 66 is an independent energy company engaged in oil refining and marketing.

Total option volume in the name exceeded 18,000 contracts, nearly four times its daily average. Fewer than 1,500 of those were puts, a reflection of the upside bias.

Yesterday’s bullish activity also came one session after similar trading in Hess.

—By CNBC Contributor Pete Najarian

Additional News: ConocoPhillips to Sell Stake in Russian Venture

Additional Views: Cramer’s Call: ConocoPhillips or Phillips 66?

___________________________

___________________________
Options Trading School:

___________________________

Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian has no positions in PSX.

___________________________

Disclaimer