Turning to the calls side of the option chain, the call contract at the $34.50 strike price has a current bid of 45 cents. If an investor was to purchase shares of WMB stock at the current price level of $34.27/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $34.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 1.98% if the stock gets called away at the June 14th expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if WMB shares really soar, which is why looking at the trailing twelve month trading history for Williams Cos Inc , as well as studying the business fundamentals becomes important. Below is a chart showing WMB's trailing twelve month trading history, with the $34.50 strike highlighted in red:
Interesting WMB Put And Call For June 14th
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