Options Trading News

February 21, 2014  Fri 9:16 AM CT

Short-term put buying tops today's option activity in energy-infrastructure company Williams.

More than 19,000 of the February Weekly 41.50 that expire a week from today puts have traded, most of them bought for $0.43. There was no open interest at that strike, so these are new positions. The volume at that strike is more than the total daily average in the name for the last month.

These puts could have been purchased to hedge a long position or make a straight bearish bet. Either way, they will expire worthless if shares remain above $41.50 by the end of next Friday's session. (See our Education section)

WMB is down fractionally to $41.92 today, continuing to trend higher from support at $34 in the last two months. The company reached 52-week highs yesterday after reporting earnings.

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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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