Options activity on Kinder Morgan Inc (KMI) surged Monday as traders positioned for a potential break above the $33 level, with call volume exceeding put volume by more than three to one.
A total of 17,869 contracts changed hands, with 13,921 calls traded against 3,948 puts. The October 2026 $33 call options saw particularly heavy interest, with 7,562 contracts exchanging hands. Prior to the spike, open interest in the strike stood at just 69 contracts, underscoring the sudden shift in positioning.
Additional call activity was concentrated in the January 2027 $35 strike, where 1,003 contracts traded amid existing open interest of 14,699. December 2026 $33 calls also saw 668 contracts traded, while September 2026 $33 puts accounted for 607 contracts.
KMI last traded at $30.92, down 1.99% on the day and fractionally below the $33 strike. The stock has a consensus analyst target of $35.81, implying 12.8% upside from current levels. The high estimate among analysts stands at $43, while the dividend yield is 4.4%.
Options market metrics reflected reduced hedging demand, with 3-month implied volatility falling to 23.57% and the 90/110 skew declining to 1.92 points. The skew measures the pricing gap between out-of-the-money puts and calls, with a lower reading suggesting reduced bearish positioning.
On the corporate front, Kinder Morgan committed $250 million in cash and $1.5 billion in pipeline assets to a $5 billion joint-venture pipeline project with Phillips 66 and HF Sinclair. The project, slated for completion in 2029, is backed by 10-year contracts and aims to reshape West Coast fuel logistics.
