Someone is hoping that time will heal all wounds in a bet
optionMONSTER's tracking programs detected the sale of 5,906
contracts each in the November 25 puts for $0.12 and the November
30 calls for $2.74. An equal-sized block was purchased at the same
time in the August 29 calls for $3.10, but volume was below open
It appears the investor is rolling forward a so-called
, which makes money from a stock remaining in a range. He or she
had probably sold both puts and calls in August. Now that the stock
has climbed, the puts are worthless but the trader is facing losses
on those calls.
Adjusting the position gives an additional three months for the
trade to work. The investor is now expecting WMB to stay between
$25 and $30, whereas the range's previous upper bound was $29. (See
Shares of the oil and natural-gas pipeline company rose 0.68
percent to $32.37 yesterday. Overall option volume in the name was
about 25 percent higher than its daily average, with that big
three-way trade accounting for almost all the activity.
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