Unusual Options Activity: Plains All American Pipeline (PAA)

Oil and gas pipeline Plains All American Pipeline (PAA) is up over 40% in the past year, handily beating the overall stock market. One trader sees shares trending higher through 2026.

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  • That’s based on the January 2026 $22 calls. With 653 days until expiration, 4,415 contracts traded compared to a prior open interest of 108, for a 41-fold rise in volume on the trade. The buyer of the calls paid $0.46 to make the bullish bet.

    Plains shares recently traded for about $17.50. Shares would need to rise another $4.50, or about 26% for the option to move in-the-money. Plains is currently at a 52-week high.

    The pipeline saw a 19% increase in earnings last year, and shares are still inexpensive at about 12 times forward earnings. Continued growth in the energy market through 2026 could lead to a further rally for shares.

    Plains is structured as a partnership, paying out most of its income as dividends. At current prices, Plains pays a 7.3% dividend.

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  • Action to take: Long-term investors looking for current high income may like shares, even with the stock near 52-week highs.

    For traders, the January 2026 calls are inexpensive and could easily see triple-digit returns before expiration on a continued move higher in shares. Traders may want to take profits if there’s a slowdown in the energy market at any point.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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