Bulls triple money in $MPC

Option traders are scoring big gains in Marathon Petroleum (MPC) for the fourth time this week.

On Sept. 23, Market Rebellion’s tracking systems detected the purchase of 10,000 November $60 calls for $1.44 to $1.63 with shares at $55.89. This was clearly fresh buying, as open interest in the strike was only 449 contracts before that session began.

Those calls traded for as much as $5.25 today, more than 3 times their purchase prices. The stock rose 12.1% in the same time frame, underscoring how quickly options can far outpace gains in their underlying shares.

It is the fourth winning trade in the name posted on Market Rebellion since Sept. 23. Market Rebellion co-founder Pete Najarian cited the unusual activity on CNBC’s “Halftime Report” today.

ong calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

MPC is up 2.68% to $62.47 as today’s session comes to a close. Shares rose this week after activist fund Elliott Management renewed its demand for the oil refining and transportation firms to split into three companies.