Refinery Bulls Return to Phillips 66
"Fast Money" Contributor
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
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