Bulls Keep Running With Marathon

Marathon Oil has been exploding higher this year, and the upside activity continued yesterday.

The energy company has rallied from $38 in early January to above $50, and option activity spiked in last month after upgrades from Deutsche Bank and Howard Weil. Despite the gains, Marathon has a very low price/earnings ratio and a dividend yield above 2 percent.

Yesterday's action was in the July 55 calls, where OptionMonster's tracking systemsdetected the purchase of more than 16,000 contracts. They traded for $1.55 early, but premiums drifted upward to $1.77-$1.78 later in the session.

By the time the dust settled, the stock was up another 1.56 percent to $50.08. More than 50,000 options traded at all strikes in the name, compared with its daily average of fewer than 34,000. Calls outnumbered puts by more than 2 to 1.

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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 MRO.