Option Investor
New Plays

New Plays

Printer friendly version

MRO $54.74 Marathon Oil ** No Stop **

Only one company will end up with Unocal and that leaves the other hungry and looking for other targets. XOM also has nearly $30 billion in cash and needing to make an acquisition. Marathon is one of the largest remaining independents and a likely target due to its diverse operations. MRO has several large properties in Asia and within China's sphere of influence. 

MRO has held the high ground this week near $55 and appears ready to break out to new highs if oil moves over $60. Options are relatively cheap and insurance against a breakdown is less than a buck. 

Company Info:

Marathon Oil Corporation (Marathon) is engaged in worldwide exploration and production of crude oil and natural gas. It operates through three segments: exploration and production (E&P), which explores for and produces crude oil and natural gas; refining, marketing and transportation (RM&T), which refines, markets and transports crude oil and petroleum products, and integrated gas (IG), which markets and transports natural gas and products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol. The Company's principal operating subsidiaries are Marathon Oil Company and Marathon Ashland Petroleum LLC (MAP). During the year ended December 31, 2004, the Company's worldwide liquid hydrocarbon production averaged 170,000 barrels per day (bpd) and sales of natural gas production, including gas acquired for injection and subsequent resale, averaged 999 million cubic feet per day (mmcfd).

Remember this? I dropped MRO as a LEAP play back in January after a month (December) of flat performance. Can I have it back please?

MRO Chart reflections

Current entry: 

Buy 2007 $55 LEAP Call VXM-AK currently $7.90

Put insurance
Buy August $50 PUT MRO-TJ, currently 85 cents, ONLY 
if MRO trades at $52.50. I do not want to buy the insurance until it is needed. 

Entry $54.74 (6/27)

Leaps Trader Play Archives