What's behind Kinder Morgan call sale
Chris McKhann | [email protected]
optionMONSTER's systems show that a trader sold 7,100 June 35 calls for $1.85. This is a new position, as its volume was far above the strike's open interest of just 257 contracts at the start of the session.
Given that these options are in the money, they were likely traded against long shares in a covered call position. This strategy would be based on the idea that that the stock will trade mostly sideways through expiration in mid-June 2013. (See our Education section)
KMI gained 2.41 percent to $35.29 yesterday, its highest close since Oct. 18. The energy-pipeline operator traded down to support at $32 a month ago.
More than 15,000 KMI options changed hands overall in the session, about 10 times the daily average in the last month.