Kinder Morgan bounced off support again yesterday, and one long-term trade is betting that any downside will be limited.
optionMONSTER systems show that 7,046 of the March 32.50 puts were sold for the bid price of $1. Previous open interest was just 143 contracts, so it is a new position.
The put selling is a bet that KMI will hold above $32.50 through expiration in mid-March. But the trader also risks having to buy shares if they fall below that level. (See our Education section)
KMI was down fractionally yesterday at $36.93. Shares of the energy-pipline operator hit their lowest level in more than a month on Tuesday after trending downward from above $40 in mid-July.
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