Tesoro Corporation (TSO) is a Texas based oil and gas refining company that distributes bulk/wholesale transportation fuels as well as retail gasoline and diesel products. At the time of this post (12:45PM CST), TSO is currently trading at 86.46, up 3.84% on the day. The stock is currently well within the upper portion of its 52 week trading range of 47.03-89.18, and is trading just off the year’s highs after a slight pullback in share prices last week managed to hold over the 80.00 support level on the daily chart.
Earlier this afternoon at approximately 12:07PM CST, OptionHacker detected and flagged some unusually bullish options activity as simultaneous large block orders hit the tape in both the Feb ’15 85.0 strike calls and the Feb 27th ’15 86.0 strike calls just as the stock began to break through 85.00 intraday resistance. A trader stepped in and bought 1,475 of the Feb monthly 85.0 calls expiring this week for 1.06, and another 2,153 of next week’s weekly Feb 27th expiration 86.0 calls for 1.22, aggressively paying above the offer across multiple exchanges in both cases.
After these calls hit the tape shares of TSO ripped to session highs and these calls moved higher with the stock.
Trade: A trader bought 2,153 TSO Feb 27th Weekly 86 Calls for $1.22
Risk: $122 per 1 lot
Reward: Unlimited
Breakeven: $87.22
Trade: A trader bought 1,475 TSO Feb 85 Calls for $1.06
Risk :$106 per 1 lot
Reward: Unlimited
Breakeven: $86.06
The TSO Weekly 86 have already traded as high as $2.34 and the Feb 85 have traded as high as $2.32. This means that both of these options doubled in a matter of less than an hour making this an extremely profitable trade.
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