OptionsHouse

Options Trading News

February 28, 2013  Thu 4:14 AM CT

WMB: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


Related Stories

WMB

Is Williams heading for a summer rally?

June 24, 2016

The energy-pipeline operator is up 28 percent in the last three months, and one investor is looking for the upward momentum to continue.

WMB

Large call trade sees rally in Williams

May 31, 2016

The energy-pipeline operator has rallied 34 percent in the last three months, and heavy call volume is betting that the uptrend will continue.

OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »