Williams is fighting its way toward resistance, and one bull
expects a breakout.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 50,000 January 25 calls for about $0.70 and the sale of a
matching number of January 27 calls for $0.25. The trade resulted
in a net cost of $0.45.
WMB rose 0.72 percent to $23.89 in afternoon trading, and is up 24
percent in the last three months. The natural-gas company has been
the target of several bullish options trades in recent months as it
consolidates around the same level where it traded immediately
before the May 6 Flash Crash.
Today's option strategy, known as a bullish call spread, will earn
a maximum profit of about 340 percent if WMB closes at or above $27
on expiration. It hasn't traded that high since September 2008.
The trade pushed total options volume in the stock to 10 times
greater than average, calls accounting for a bullish 95 percent of
(Chart courtesy of tradeMONSTER)
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