Williams has been drifting lower, but one investor still likes
optionMONSTER's market scanners detected the sale of 25,858
December 31 puts for $0.85 and the purchase of an equal number of
November 32 puts for $0.45. Volume was below open interest in
shorter-dated contracts, indicating that an existing position was
rolled from one strike to the other.
The investor probably sold the Novembers at an earlier date and has
now closed that position. Shifting to December let him or her
collect an additional $0.40 of income, while also lowering the
price at which they must buy shares. The transaction occurred
shortly before expiration this Friday, so the trader probably wants
to avoid the risk of being assigned stock if it closes below the
strike price. (See our
section for more on
WMB is down 0.45 percent to $31.93 in midday trading. The
natural-gas company hit a multi-year high of $37.56 last month but
has been pulling back since then. Shares are now back near their
200-day moving average and the same $32 level where they
consolidated over the summer. That could make some chart watchers
think further downside will be limited and help explain the put
Overall option volume in the name is almost quadruple the daily
average so far today.
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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.