OptionsHouse

Options Trading News

May 14, 2012  Mon 3:34 AM CT

WMB: SEE CHART GET CHAIN FIND STRATEGIES
A huge put spread topped Friday's option activity in Williams Company, but it doesn't appear bearish.

More than 21,000 each of the June 32 and 26 puts changed hands in unison on Friday, according to optionMONSTER's systems. A trader sold the 32s for the bid price of $0.86 and bought the 26s for the ask price of $0.09. The previous open interest were 1,049 and 0 respectively, so this was a new opening credit spread. (See our Education section)

If WMB remains above $32 through expiration, the trader would keep the credit of $0.77  as profit. If the stock trades below $26, the position could lose $5.23.

WMB finished Friday at $32.54, gaining a penny on the day but lower on the week. The natural-gas pipeline company traded at a four-year high of $34.63 on the first of the month.
Share this article with your friends


Related Stories

WMB

Limited gains seen for Williams

April 12, 2016

5,000 Weekly 19 calls expiring on April 29 sold for $0.52 to $0.53.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

The Problem with Trading Earnings

AP Options specializes in Swing Trading. Swing trading is the art of locating short term, quick, aggressive movements in a stock normally created by the technicals but, can be sometimes created by the fundamentals. These trades, at least in this service, last a couple of days to a week in the majority of cases.

View more education articles »