Stock Options Watch: ADSK, MRO

MRO – Marathon Oil Corp – Shares in Marathon Oil are down slightly on Friday morning, trading 0.45% lower on the session at $35.10 as of 11:05 a.m. ET. The Houston, Texas-based company popped up on our ‘most active by options volume’ market scanner today with heavy trading in the December expiry puts. Traders picking up Marathon put options may be bracing for shares in the name to potentially pull back before the end of the year. The company’s third-quarter earnings report is also just around the corner, with the company scheduled to report after the closing bell on Monday.

The most actively traded contracts on MRO are the Dec $33 strike puts, with upwards of 23,500 puts in play against open interest of just 170 contracts. Time and sales suggests most of the volume was purchased at a premium of $0.48 apiece during the first 40 minutes of the session this morning. The put position may be profitable at December expiration if shares in the energy company drop more than 7.0% from the current price to breach the effective breakeven point at $32.52. Marathon shares last traded below $32.52 at the end of August.

ADSK – Autodesk, Inc. – A large block of upside call options that traded on Autodesk this morning looks for shares in the maker of 3D printing software to rally substantially into the end of the calendar year. Shares in ADSK increased 3.5% this morning to $41.32. The company is scheduled to report third-quarter earnings after the close on November 21st.

The single-largest trade in Autodesk options so far today appears to be the outright purchase of a block of 10,000 of the Dec $44 strike calls for a premium of $0.88 each. In total, upwards of 14,500 of the $44 calls have changed hands against open interest of 95 contracts. The buyer of the calls at $0.88 each stands ready to profit at expiration next month in the event that Autodesk shares rally more than 9.0% over the current price of $41.13 to trade above the effective breakeven price of $44.88. Shares in ADSK are up nearly 30% since this time last year.

About Caitlin Duffy 373 Articles

Affiliation: Interactive Brokers

Caitlin Duffy joined Interactive Brokers in 2009. In her role as Equity Options Analyst, Caitlin provides daily market commentary; highlighting various options trades, trading patterns and strategies of interest. Through Interactive Broker's webinar program, Ms. Duffy presents a number of educational, options-related events describing the theoretical pricing of options, the option Greeks as well as options strategies.

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