Trade buys time for Williams rebound

By
A A A

Williams has been drifting lower, and one investor wants more time for the stock to turn around.

optionMONSTER's tracking systems detected the sale of 20,388 August 32 puts for $2.98. An equal number of July 32 puts were bought at the same time for $2.90, but volume was below open interest at the strike. The activity suggests thats an existing position was rolled forward by one month.

WMB is flat on the day at $29.15 in afternoon trading, so those puts are in the money . It appears that the investor had previously sold the July 32 puts, looking for the stock to hold its ground above $32. But now that it's declined, he or she is adjusting the position to avoid being assigned and required to buy the shares.

The put seller now has more time for the energy stock to rebound, while collecting a small credit of $0.08 in the process. It was the second straight session of unusual option action in Williams, which drew call selling yesterday . (See our Education section)

The next big news event that could serve as a potential catalyst for the stock is the release of second-quarter earnings after the bell on Aug. 2.

Overall option volume in the name is 11 times greater than 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.


This article appears in: Investing , Options

Referenced Stocks: WMB

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

110,219,031
  • $6.79 ▲ 14.31%
104,982,008
  • $11.83 ▲ 12.35%
95,065,355
  • $3.40 ▲ 0.59%
79,694,763
  • $36.59 ▲ 2.64%
49,037,292
  • $39.90 ▲ 5.81%
47,069,528
  • $15.34 ▼ 1.03%
43,387,835
  • $6.56 ▼ 1.94%
42,066,487
  • $98.38 ▼ 0.65%
As of 7/29/2014, 04:04 PM