OptionsHouse

Options Trading News

August 22, 2013  Thu 1:47 AM CT

KMI: SEE CHART GET CHAIN FIND STRATEGIES
Kinder Morgan bounced off support again yesterday, and one long-term trade is betting that any downside will be limited.

optionMONSTER systems show that 7,046 of the March 32.50 puts were sold for the bid price of $1. Previous open interest was just 143 contracts, so it is a new position.

The put selling is a bet that KMI will hold above $32.50 through expiration in mid-March. But the trader also risks having to buy shares if they fall below that level. (See our Education section)

KMI was down fractionally yesterday at $36.93. Shares of the energy-pipline operator hit their lowest level in more than a month on Tuesday after trending downward from above $40 in mid-July.
Share this article with your friends


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 »