Williams has been rallying, but now investors are turning
optionMONSTER's Depth Charge tracking system detected the purchase
of 7,500 March 24 puts for $0.25 and the sale of an equal number of
March 26 calls for $2.15. Volume was more than 39 times open
interest in both strikes.
WMB gapped higher at the open and is up 2.44 percent to $27.69 in
morning trading. The natural-gas stock has rallied 22 percent in
the last three months amid frequent call buying, but momentum has
stalled recently as it pushes against long-term resistance levels
Today's option trade was tantamount to selling the shares. The
investor locked in a maximum exit price of $27.90 and a minimum of
A similar transaction occurred in the March 30 calls and the
February 26 puts, which were sold and bought, respectively, each
for $0.44. Volume was below open interest so it isn't clear whether
a new position was opened or an old one was closed. Regardless, the
trade is consistent with an expectation that WMB will now push
Overall option volume in the name is 6 times greater than average
so far today.
(Chart courtesy of tradeMONSTER)
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