What's behind put activity in Williams
Chris McKhann | firstname.lastname@example.org
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.