Volume Spike Investor

Magellan Midstream Holdings, L.P. (NYSE: MGG) has seen an options roll-out trade today.  The trade itself isn’t all that interesting, but the size is.

The JUN-09 $22.50 PUTS had some 20,026 contracts trade hands, and the open interest was    24,848 contracts.  If you go further out by only a month to the JUL-09 $22.50 PUTS you see almost the exact same contracts with some 20,050 contracts trading today and an open interest of only 164 contracts.

20,000 contracts on a fully leveraged basis is 2 million shares.  This stock only trades about 233,000 shares (units) per day and has a market cap of about $1.45 Billion.  Even with the trade it has only seen 122,808 shares trade (up 2.3% at $23.16 as of 3:08 PM EST.

The 52-week trading range is $21.11 to $31.00.

As a reminder, this was the one which had the fire earlier this month at the Magellan Kansas City Terminal.  It also raised its dividend to $0.3225 per quarter in late-April.

Does someone know something, or is this just an insider who was able to put on part of a collar trade?

Jon C. Ogg
June 17, 2008