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Last Friday marked the second straight day of brisk option activity on the August 17-1/2 call of Williams Communications Group (WCG - 13.81). On Friday, this out-of-the-money option saw volume of over 3,000 contracts. Virtually all of the volume translated into new open interest. Nearly 9,400 contracts of open interest now reside on the option.
In last Thursday's trading, the August 17-1/2 call was also active. 2,500 contracts changed hands on that day, with the large majority of the volume translating into new open interest.
From a technical perspective, the shares were able to trade above their 20-day moving average for the first time in over a month last Friday. However, the stock was not able to close above this trendline.