• Chart of the Day: Williams Companies (WMB)

    by  • April 22, 2013 2:09 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

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    Today’s chart is of Williams Companies (WMB) which operates as an energy infrastructure company. The company’s Williams Partners segment owns and operates natural gas pipeline system extending from Texas, Louisiana, Mississippi, and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area.

    Ticker:  Williams Companies (WMB)

    Strategy:  Long Trade

    What I Am Looking At:

    • Outperformance on a year-to-date basis, +15 percent and +17 one year return
    • Outperforming its peers in the energy sector
    • Trading just beneath all-time high set back in 1999 ($42 area)
    • Daily chart showing a bullish pennant formation
    • Short interest has increased nearly 50 percent during the past month as shares were in a consolidation mode
    • Peak put and call open interest resides at the 38-strike price for the May series
    • A break above the 38-strike price could propel shares higher on a put unwind
    • Quarterly earnings growth (yoy) +86 percent
    • Reports earnings on May 7th, after the market closes

    Strategy:  Buy on breakout of pennant, targeting all-time high near $42 area

     

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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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