Options Trading News

February 28, 2013  Thu 4:14 AM CT

Williams has been in a steady uptrend for years, but yesterday it was pure fast money.

On Tuesday, optionMONSTER's Heat Seeker tracking system detected unusual activity in the Weekly 34 calls expiring this Friday. Buyers paid as little as $0.08 to open positions, and the largest block priced for $0.17.

Then the fireworks hit yesterday as energy stocks rallied early. Shares of the energy-pipeline operator inched higher throughout the session, at one point appreciating 2.1 percent. But that was nothing compared with the move in those weekly calls, which shot as high as $0.55--a gain of 200 percent.

The move shows the kind of leverage that can be generated with weekly options, short-term contracts designed for timing the market--down to the day and sometimes to the hour. Use our proprietary monitor every day to track these instruments.

WMB ended yesterday's session up 1.66 percent to $34.35.
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I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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