Western Refining, Inc. (WNR) is an oil refiner and operator of service stations and convenience stores. The company’s stock is currently trading around $41.70 in a 52 week range of $25.62-$43.00. The stock has been underperforming the market this year and shares have fallen around 1.65% year to date. Despite this relative underperformance options traders have taken a decisively bullish stance on WNR today as we have seen some very bullish orders hitting the tape. Earlier in today’s session a trader bought 2,000 WNR Mar 41 calls for $0.40. This is a very aggressive trade because these options will expire tomorrow. This block also represents volume nearly 5.2 times the average daily option volume in WNR. We believe that order flow this strong justifies a long in WNR.
My Trade: Buying the WNR Apr 41 Calls for $0.45
Risk: $45 per 1 lot
Reward: Unlimited
Breakeven: $41.45