Williams Companies (WMB) is off 22 cents to $29.24, even as natural gas prices rally 8 percent on bullish weekly inventory data. Recent options trades on the natural gas producer include a three-way spread, in which the stategist bought June 26 – 32 put spreads on WMB and sold 32,000 July 32 puts, collecting 21 cents, 21000X, and probably rolling a position out one month to avoid assignment on the in-the-money Jun 32 puts at expiration. Shares notched 52-week highs of $34.28 on May 1, but have been trending (14.8%) lower since that time. The company presents at a BofA conference on Jun 19 and will release earnings again on Aug 1.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.