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May 14, 2012  Mon 3:34 AM CT

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.
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