Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 12, 2013  Tue 9:24 AM CT

WMB: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Williams Companies are slipping today, but one large trader apparently believes that the energy infrastructure company will stay range-bound.

optionMONSTER systems show that a trader sold 5,000 January 2014 30 of those puts for $1.68. The volume was quadruple the strike's open interest of 1,228 contracts at the beginning of the day, so this is clearly a new position.

Less than a minute later, a print of 150,000 WMB shares was sold for $35.50. The combination of stock and short puts would make for a delta-neutral position that is looking for lower volatility and for shares to stay range-bound. (See our Education section)

WMB is down 0.8 percent this morning to $35.45. The stock ended Friday's session at $36, its highest close since the 52-week high in mid-October. Shares were down at support at $31 in mid-December and have been climbing since.
Share this article with your friends


Related Stories

WMB

Williams draws vote of confidence

October 23, 2014

Traders apparently believe that any downside will be limited in the energy-infrastructure company, which has rebounded sharply from last week's selloff.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER