Williams has been very active recently, and some investors are
in the name for the long haul.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of about 80,000 January 2014 40 calls for about $0.86. A similar
number of January 2014 45 calls were sold for $0.16, and volume was
more than twice the previous open interest at each strike.
The trade cost $0.70 to open and will earn a maximum profit of 614
percent if WMB closes at or above $45 on expiration one year from
now. It's known as a
bullish call spread
because it leverages a move between two prices, in this case $40
and $45. (See our
WMB rose 1.08 percent to $33.80 yesterday. The natural-gas stock
has steadily trended higher since early 2009 and delivered many
winning trades on the long side. Option activity has picked up
again this month and already saw large bullish trades on at least
two other occasions.
Total option volume was 10 times greater than average in the
session, according to the Heat Seeker. Calls outnumbered puts by 52
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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