What's behind Kinder Morgan call sale

optionMONSTER

Shares of Kinder Morgan jumped yesterday, but a large trader is looking for the stock to be range-bound in the first half of next year.

optionMONSTER's systems show that a trader sold 7,100 June 35 calls for $1.85. This is a new position, as its volume was far above the strike's open interest of just 257 contracts at the start of the session.

Given that these options are in the money , they were likely traded against long shares in a covered call position. This strategy would be based on the idea that that the stock will trade mostly sideways through expiration in mid-June 2013. (See our Education section)

KMI gained 2.41 percent to $35.29 yesterday, its highest close since Oct. 18. The energy-pipeline operator traded down to support at $32 a month ago.

More than 15,000 KMI options changed hands overall in the session, about 10 times the daily average in the last month.

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