Paper bought to close 6500 WMB March 16 calls for 4.00 & rolled the position back to the WMB May 16 calls collecting 5.25.
Williams Companies Inc., WMB, trading at 18.59 with an IV30 of 109.11 and an HV10 of 214%, saw a call calendar trade today.? The stock, with an ADV of 10,500 and an open interest of 290,000 contracts, saw a trader sell and roll calls in a calendar spread.?? A customer bought the WMB March 16 calls for 4.00, in what was likely a closing trade and rolled the position back to the WMB May 16 calls collecting 5.25. This trade was executed 6500 times, with May certainly an opening trade.
This trade was likely a stock holder that had sold the March 16 calls as a call over right on January 14. At the time the WMB was depressed.? Since then it has bounced and the trader, seems to knot want to dump his or stock position and believes there is still potential for the stock to fall.
This trade should be considered bearish volatility and neutral the stock itself.