At the time of this post, Williams Companies, Inc. (WMB) was trading at 40.57, down .02.? A trader sold 9,000 of the WMB January 2015 50 calls collecting 2.10.? This appears to be a legged into buy-write trade.? The trader was looking to collect yield and is expecting the stock to rally somewhat over the next year.? A total of 9,000 traded at a volatility of 26.60%.? Well above the near-term vol of 21.6%.
This trade should be viewed as mildly bullish the underlying and mildly bearish the underlying.? Traders looking to piggy back should consider some sort of put selling routine,? The trader clearly thinks that 20% is about the most the stock has over the next year.? It is likely a put selling routine could outperform this put selling approach.