Williams has been ripping amid an emerging bull market in the
natural-gas sector, and investors continue to look for more upside.
optionMONSTER's Heat Seeker tracking system detected the purchase
of 11,000 January 40 calls for $0.64. There was also a bullish
vertical spread, with 2,000 August 32 calls bought for $1.47 and an
equal number of August 35s sold for $0.65. That resulted in a net
cost of $0.82, and will earn a 144 percent profit if WMB rallies to
$35 by expiration.
The shares are down 0.33 percent to $30.16 in afternoon trading but
have surged 63 percent in the last six months. That includes a gap
higher that occurred on Feb. 17 after management announced it would
split its production and pipeline businesses into two separate
The company, which has traditionally carried a heavy debt load,
fell sharply during the 2008 financial crisis, but has been
fighting its way back as credit conditions improve. It's also been
riding a wave of bullishness in the natural-gas sector, especially
as the market anticipates increased production.
Overall options volume in WMB slightly below average so far today,
but calls outnumber puts by 7 to 1--a reflection of the bullish
sentiment. The stock has been a frequent target of call buying for
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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