A trader bought 7,500 August WMB August $30/$27 bull risk reversals at $0.65.
The trader is making a very large bullish bet on WMB. The spread is short puts and long calls and therefore has unlimited risk to zero and unlimited profit potential. The short puts partially finances the long calls. The break even underlying stock level is $30.65 by August expiration.
It's interesting to note that this trade was executed after an earlier sale of 15,000 July $23 puts at $0.11 along with a sale of 28,000 August $35 calls at $0.07.
WMB traded 125,642 option contracts compared to average daily volume of 26,085. The 52-week range is a low of $17.53 and a high of $33.47.
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