The top two trades in the options market so far today are large blocks of Magellan Midstream Holdings (MGG, news, chart), as a player appears to be rolling a position of short puts from July to September. To be specific, 20,000 of the MGG July 22.5 puts traded askside or for 70 cents a contract just before 10:00 Eastern time. At the same time, a same number of September 22.5 puts traded bidside, or for $1.45 a contract. Since the July contracts have open interest of 20,257 and come off the board Friday, the action is probably closing trades. The September 22.5s have open interest of just 236 contracts, suggesting opening sell orders in those contracts. If so, this strategist might be convinced that MGG, which is engaged in the transportation, storage, and distribution of refined petroleum products, is due to move higher between now and September. If not, are possibly willing to take delivery of the stock at $22.50 a share. Shares are down 26 cents to $21.82.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.