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

Bulls keep coming back to Williams

February 11, 2015

The pipeline operator's stock got hammered along with the broader energy sector last year but held the level where it peaked in 2008 and consolidated 10 to 11 months ago.

WMB

Another show of support for Williams

February 11, 2015

The pipeline operator yesterday has seen bullish option activity leading up to its earnings report next week, and traders were showing more confidence in name yesterday.

WMB

Bulls keep rolling higher in Williams

February 10, 2015

A trader is rolling a huge February call position higher in the pipeline operator, one week after traders doubled their money on the name.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »