$MPC call prices quadruple

Bullish option traders are cashing in profits on Marathon Petroleum (MPC) for the third time this week.

On June 13, Market Rebellion’s activity scanners flagged the purchase of 2,500 October $57.50 calls bought for $1.08. The trade was part of a bullish spread with shares at $47.59.

Those calls sold for as much as $4.25 today, about 4 times their purchase price. The stock rose 27.93% in the same time period, a large move but nowhere near that of its options on a relative basis.

Long 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.

It is the third winning trade in the name posted on Market Rebellion since Monday.

$MPC is up 0.47% to $60.43 this afternoon. Shares rose after activist fund Elliott Management renewed its demand for the oil refining and transportation firms to split into three companies.