Paper bought 50,000 MPC?50/60 call spreads for a net purchase price of 1.15: a potential pay out of 8-to-1.
Marathon Petroleum Corp, trading 40.53 (up 1.08 (with an IV30 of 40.3 and an HV10 of 37.7, is seeing bullish call action today.? The stock with ADV of 6400 and an OI of 250,000 contracts had a customer buy the Jan 2017 50/60 call spread in bulk.? In a block of 5k and 45k, a customer bought the Jan 50 calls for 1.35 against which the customer sold the Jan 60 calls at .20 total buying 50,000 in total.? This creates a bull call spread that is $10 wide for a net purchase price of 1.15.? A potential pay out of 8-to-1.
Based on the OI this is likely an opening trade.? The customer clearly thinks that MPC?is going to have more upside.? The stock has had a nice rally and has earnings coming up on the 28th of April.? This trade will do best if MPC?moves to 60 dollars a share by the beginning of next year an increase of 50%.
This trade should be considered bullish the underlying and bullish vol.