KMI is on the brink of a breakout. Once the 200 day moving average, which capped a powerful post earnings breakout back in July, is cleared the stock could be on its way. KMI is battling the 200 day again this week. A key level to watch in the near term is $18.70. A close back below this area would indicate the declining 200 day is still in control of the action. Over in optionland, a rally is expected. Bob von Halle has some color: Very large trade in KMI…..22,000 Jan 19.5 calls were bought for $.11 with the stock at $18.90. Although not technically an MLP, it is often compared to its brethren in that space given its similar business model. That would represent a 3%+ move by next Friday’s expiration date. The sector ETF, AMLP has been quite strong, along with the rest of the energy sector this year. The trader might be expecting a bit of catch up in this name over the next few trading days. I am long the March 20 calls for $.25 which were also modestly active this morning prior to this large trade.
At time of publication we do not have a position in KMI equity.