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Buyers Stay Hot With Phillips 66

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- Phillips 66 (PSX) has been lighting up our scanners for months and the buyers came back for more Monday.

OptionMonster's tracking systems showed heavy activity in the January 60 calls, with about 27,000 trading in volume well above the previous open interest of 3,841 contracts. The largest block priced for 70 cents.

Calls lock in the price where traders can buy shares, so these options can provide significant leverage when the stock goes up. But if the shares don't move, the calls will expire worthless.

Phillips 66 closed at $53.58 on Monday, up 2.37% on the session and 67% in the last six months. As the refiners keep rolling, the beta trade has focused like a laser on a few specific names like this one.

Calls outnumbered puts by 46,000 to about 7,500, a reflection of Monday's bullish sentiment.

Najarian owns PSX shares.

Stock quotes in this article: PSX 
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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