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.

Share this article with your friends



The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »