First it was Williams, and now the natural-gas bulls are looking
optionMONSTER's Heat Seeker tracking program detected heavy buying
in the April 22 calls about halfway through Friday afternoon, with
some 2,000 contracts initially bought for $0.25. Traders continued
to pile in later in the session, pushing total volume to 3,964 at
the strike--almost triple the previous open interest, indicating
that this was new activity.
lock in the price where investors can purchase stock, so they can
generate some nice leverage
if the shares rally. That's exactly what happened on Friday as
those calls inflated to $0.35 by the end of the session, a gain of
about 40 percent versus a much smaller move in the share price.
STR, which focuses on pipelines and storage in the western United
States, closed the session up 2.34 percent to $20.97. Earlier in
the week, its much larger peer WMB saw heavy activity in the
as an investor looked to generate big leverage from a steady gain
in the share price.
Total option volume in STR was 15 times greater than average in the
session. Calls outnumbered puts by a bullish 112 to 1.
(A version of this post appeared on
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