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• Trade sees Williams holding near highs
• Big returns from Williams weeklies
• Energy bulls position for the long term

• WMB 100% Rate It

Williams has been rallying, but now investors are turning cautious.

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 from 2008.

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 $25.90.

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 lower.

Overall option volume in the name is 6 times greater than average so far today.

(Chart courtesy of tradeMONSTER)

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