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Bulls pour into Williams at highs

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Williams hit a 13-year high today, and traders are looking for more gains in 2014.

About 3,000 May 42 calls were bought for $0.94 to $1.06 this morning, according to optionMONSTER's Heat Seeker tracking system. The volume was well above the strike's previous open interest of 1,415 contracts, indicating that these are new positions.

These long calls lock in the price where traders can buy the stock through mid-May no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $42. (See our Education section)

WMB is up 0.34 percent to $38.54 this morning after peaking at $38.68 earlier in the session, its highest price since September 2000. The natural-gas and oil pipeline operator gapped above several key moving averages on Dec. 17 and has been running higher since.

Overall calls in Williams are outpacing puts by more than 4 to 1 so far today.

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